Exercise 7-5
Swifty Company manufactures dental instruments. The company's product line includes products as simple as dental picks and products as complex as panoramic x-ray machines. Carol
Lindquist, a senior product manager responsible for implementing an activity-based costing system at Swifty, identified the following three activity cost pools: assembling, packaging, and
designing. Carol also investigated the components of overhead cost and determined that each cost is split among the three cost pools based on the following percentages.
Cost Category Total Cost Assembling Packaging Designing
Salaries
Supplies
Utilities
$\text{3,880,000}
26\%
19\%
55\%
$\text{1,390,000}
56\%
22\%
22\%
$\text{754,000}
79\%
14\%
7\%
Using the percentages above, calculate the costs included in each of the three activity cost pools. (Round answers to 0 decimal places, e.g. 5,275.)
Cost Category Assembling Packaging Designing
Salaries
Supplies
Utilities
Total cost
$
$
$
$
$
$
$
$
