Divide these costs into activity cost pools, and identify a cost driver for assigning each pool of costs to products. Calculate the total cost in each activity cost pool.
Cost Pool 1: Unit-Level I
Raw materials and components 2,950,000 Yen
Inspection 30,000 Yen
Total Cost 2,980,000 Yen
Cost driver for assigning pool 1 is raw-material cost
Cost Pool 2 : Unit-Level I
Depreciation, Machinery 1,400,000 Yen
Electricity, Machinery 120,000 Yen
Equipment Maintenance, Wages 150,000 Yen
Equipment Maintenance, Parts 30,000 Yen
Total Cost 1,700,000 Yen
Cost driver for assigning pool 2 is number of units produced
Cost Pool 3: Batch-Level I
Setup Wages 40,000 Yen
Total Cost 40,000 Yen
Cost driver for assigning pool 3 is number of production runs.
Cost Pool 4: Product-Sustaining Level
Engineering Design 610,000 Yen
Total Cost 610,000 Yen
Cost driver for assigning pool 4 is product parts number
Cost Pool 5: Facility-Level I
Depreciation, Plant 700,000 Yen
Insurance, Plant 600,000 Yen
Electricity, Light 60,000 Yen
Custodial Wages, Plant 40,000 Yen
Property Taxes 120,000 Yen
Natural Gas, Heating 30,000 Yen
Total Cost 1,550,000 Yen
Cost driver for assigning pool 5 include costs allocated towards supporting departments, costs allocated to products, square footage, and number of nits manufactured.