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.