Abram Technology's Assembly Department, which assembles and tests digital processors, reports the following data regarding processor G27:

The activities required to build the processors are as follows:

Requirements 

1. Fill in the blanks in both the opening schedule and the list of activities.

2. How is labor cost assigned to products under this \(A B C\) product costing system?

3. Why might managers favor this \(A B C\) system instead of Abram's older system that allocated all conversion costs on the basis of direct labor? 

Transcribed Image Text:

Direct materials cost Activity costs allocated Manufacturing product cost $56.00