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Cost service cost of customers 81000 900 customers 90

Product A Product B Gross profit per customer $72 60 $176 80 -90 00-90 00 Profit loss per customer Grinding Unit level Polishing Unit level Product modification Product level Providing power Facility level System calibration Batch level Compute the activity overhead rates using ABC Form cost pools as appropriate Determine overhead

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Cost service cost of customers 81000 900 customers 90

Cost service cost ÷ # of customers = $81 000 ÷ 900 customers = $90 per customer The gross profit adquate for each Grinding Unit level Polishing Unit level

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