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ACC 560 Week 3 Homework Chapter 4 (BE 4-7, BE 4-12, E4-1, E4-6,
E4-14)
Chapter 4: Activity-Based Costing
ACC 560 WEEK 3 Chapter 4 Brief Exercises 7 and 12; Exercises 1, 6,
and 14
BE4-7
Spud, Inc. a manufacturer of gourmet potato chips, employs activity-
based costing. The budgeted data for each of the activity cost pools is
provided below for the year 2017.
Activity Cost Pools
Estimated Overhead
Expected Use of Cost Drivers per Activity
Ordering and receiving
12,000 orders
$84,000
Food processing
60,000 machine hours 480,000
Packaging
440,000 labor hours 1,760,000