Amando Plastics Company makes just two product lines , plastic casings for pens and plastic casings for cell phones .
Based on new information , management has adjusted the percentages that apply to the first stage of the ABC system as shown below .
Indirect Resource
Percent of Resource Used In
Plant and Machinery
Engineers and CAD Equipment
Processing activity 90 % 30 %
Production support
10 % 70 % activity
The company has implemented an Activity-Based Cost allocation system .