Calculate the total cost in each activity cost pool.

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.

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