All -\- I have a quick question on setting up a homework problem for\ngraduate level accounting.\n\nA group member and I are coming up with different answers to how to do\nthe costing systems. Basically, the question is how much does each\nproduct cost, given\n\nLabor (1000 employees) 90,000,000\nOverhead\nEquipment 190,000,000\nEngineering 30,000,000\n\nfor a total of 300,000,000.\n\nI broke it down by how much each employee cost (90,000,000 / (num of\nemployees * available employee hours), which I came up with an\nhour. Then, I broke down the equipment & engineering seperately by the\namount of avialble machines (19) and the amount of operational hours\n(6000). I thought I was doing it by function, my group thinks I'm\ndoing it by activity.\n\nMy group member took the total hours to make a product like I did,(10\nhours), but he took the entire 300,000,000 / (num of employees * num of\navailable hours), which gave him 5 an hour. The problem states the\ncompany charges a combined labor and overhead by hour laber plus the\namount of materials. Isn't' this more ABC?\n\nI'm not an accountant either, so any help would be appreciated. I\ndon't want anyone to do our homework for us, just give us a push in the\nright direction.\n\nThanks!