Triumph Trophies makes trophies and plaques and operates at capacity. Triumph does large custom orders, such as the participant trophies for the Minnetonka Little League. The controller has asked you to compare plant-wide, department, and activitybased cost allocation.

Other information follows:
Setup costs in each department vary with the number of batches processed in each department. The budgeted number of batches for each product line in each department is as follows:

Required

Supervision costs in each department vary with direct manufacturing labor costs in each department
1. Calculate the budgeted cost of trophies and plaques based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs
2. Calculate the budgeted cost of trophies and plaques based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct costs of the assembly department.
3. Calculate the budgeted cost of trophies and plaques if Triumph allocates overhead costs in each department using activity-based costing.
4. Explain how the disaggregation of information could improve or reduce decision quality.

Transcribed Image Text:

Triumph Trophies Budgeted Information for the Year Ended November 30, 2019 Trophies $26,000 31,200 Forming Department Direct materials Direct manufacturing labor Overhead costs Setup General overhead Assembly Department Direct materials Direct manufacturing labor Overhead costs Set up Supervision Trophies $ 5,200 15,600 Plaques $22,500 18,000 Plaques $18,750 21,000 Total $48,500 49,200 24,000 20,772 Total $23,950 36,600 46,000 21,920