In order to compare WoolCorp’s current method with
activity-based costing, you interview the production staff and
compile the following information, which relates to the costs for
raw wool and wool yarn.
Type of Cost
Activity Base
Total Cost
Sorting
Hours of sorting
$25,600
Cleaning
Units of cleaning machine power
38,400
Combing
Hours of combing machine use
1,300
Raw Wool
Wool Yarn
Hours of sorting required
1,000
4,000
Units of cleaning machine power required
1,800
4,200
Hours of combing machine use...