4. Activity-based job-costing system Henriksen AS manufactures and sells packaging machines. It recently used an activity-based approach to refine the job-costing system at its Vejle plant. The resulting job-costing system has one direct-cost category (direct materials) and four indirect manufacturing cost pools. These four indirect-cost pools and their allocation bases were chosen by a team of product designers, manufacturing personnel and marketing personnel.

I need the whole question answered!

Indirect manufacturing cost pool	Cost-allocationbase	Budgeted cost allocation rate
1.Materials handling	Component parts	DKr 8 per part
2. Machining	Machine hours	DKRr 68 per hour
3.Assembly	Assembly hours	DKr 75 per hour
4.Inspection	Inspection hours	DKr 104 per hour

Langeland recently purchased 50 can-packaging machines from Henriksen AS. Each machine has direct materials costs of DKr 3000, requires 50 component parts, 12 machine-hours, 15 assembly-hours and 4 inspection-hours. Henriksens prior costing system had one direct-cost category (direct materials) and one indirect-cost category (manufacturing overhead, allocated using assembly-hours).

Required:

1 Present overview diagrams of the prior job-costing system and the refined activity-based job-costing system

. 2 Calculate the unit manufacturing costs (using ABC) of each machine and the total manufacturing cost of the Langeland job.

3 The activity-based job-costing system of Henriksen has only one manufacturing direct-cost category: direct materials. A competitor of the Henriksen Company has two direct-cost categories at its manufacturing plant: direct materials and direct manufacturing labour. Why might Henriksen not have a direct manufacturing labour costs category in its job-costing system? Where are the manufacturing labour costs included in the Henriksen costing system?

4 What information might members of the team that refined the prior costing system find useful in the activitybased job-costing system?