Heated Tools Ltd uses activity-based costing. It has identified three cost pools and their drivers as follows:
|
Purchasing |
Quality control |
Despatch |
|
|
Cost pool |
$60,000 |
$40,000 |
$30,000 |
|
Driver |
12,000 |
4,000 |
2,000 |
|
Purchase orders |
Stores issues |
Deliveries |
Product Hekla uses $100 of direct materials and $75 of direct labour. In addition, each Hekla has been identified as using five purchase orders, eight stores issues and two deliveries.
Calculate the total cost of each Hekla.