1. Compute the manufacturing overhead allocated to each customer in 2015 using the simple costing system that uses machine-hours as the allocation base.

2.compute the manufacturing overhead allocated to each customer in 2014 using department-based manufacturing overheard rates.

3. Comment on your answers in requirements 1&2. Which customer do you think was complaining about being overcharged in the simple system? If the new department-based rates are used to price contracts, which customers will be unhappy?

4.how else might ap use the info available from its department by department analysis of manufacturing overhead costs?

5. Ap's managers are wondering if they should further refine the department by department costing system into an abc system by identifying different activities within each deparment. Under what conditions would it not be worthwhile to further refine the deparment costing system in an abc system?