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32674 Soru 1 room for et Downhill Fast manufactures three ski products: boots poles, and helmets. The company allocates manufacturing Overhead Costs to each product

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32674 Soru 1 room for et Downhill Fast manufactures three ski products: boots poles, and helmets. The company allocates manufacturing Overhead Costs to each product line based on machine-hours. A large portion of its manufacturing overheed cost is incurred by the Maintenance Department. This year the department anticipates that it will incur $250,000 in total costs. The following estimates pertain to the upcoming year. Estimated Estimated Units Product Machine-Hours of Production Boots 5,000 50.000 Poles 10,000 200.000 Helmets 35,000 20.000 Caro! Safooma, the company's cost accountant suspects the unit costs are being distorted by using a single activity base to allocate Maintenance Department oosts to products. She is considering the molementation of an t-based costing system ABC Once the proposed ABC s stem the maintenance costs would be located to the Following activity cost pools using the number of orders as an activity base the ecument set-up cool and 2 the custo al DOG of 2001 ooree's kleit the internance Departmenten, arometer 600 relate to onoment states hereas 800 ne ates custod Functions Eduament seoste theme of outon runs associated with each product the cente COO WOOD at based on the bar foro Cruct Dosare concurence and Duce cater to produced the ortadores ou Do Home 32674 Soru 1 room for et Downhill Fast manufactures three ski products: boots poles, and helmets. The company allocates manufacturing Overhead Costs to each product line based on machine-hours. A large portion of its manufacturing overheed cost is incurred by the Maintenance Department. This year the department anticipates that it will incur $250,000 in total costs. The following estimates pertain to the upcoming year. Estimated Estimated Units Product Machine-Hours of Production Boots 5,000 50.000 Poles 10,000 200.000 Helmets 35,000 20.000 Caro! Safooma, the company's cost accountant suspects the unit costs are being distorted by using a single activity base to allocate Maintenance Department oosts to products. She is considering the molementation of an t-based costing system ABC Once the proposed ABC s stem the maintenance costs would be located to the Following activity cost pools using the number of orders as an activity base the ecument set-up cool and 2 the custo al DOG of 2001 ooree's kleit the internance Departmenten, arometer 600 relate to onoment states hereas 800 ne ates custod Functions Eduament seoste theme of outon runs associated with each product the cente COO WOOD at based on the bar foro Cruct Dosare concurence and Duce cater to produced the ortadores ou Do Home

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