Refer to the information presented in E4-3. Suppose that Francis Company manufactures three products. Information about its three products follows:

Required:
1. Using activity proportions, determine the amount of overhead assigned to each product.
2. Compare these results with those obtained using activity rates in E4-4-
3. Considering the information about these three products, comment on the likely impact of using a traditional costing system.

Transcribed Image Text:

Product A Product B Product C Number of machine hours 30,000 40,000 10,000 Number of designer hours 3,200 1,800 3,000 Number of batches 50 75 275