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- A company has decided to convert from Conventional product costing to an activity-based System. The company produced two types of braces clocks, small and
- A company has decided to convert from Conventional product costing to an activity-based System. The company produced two types of braces clocks, small and large. The clocks are produced in batches. Information concerning these two products are as follows: To mall clow larger Activity 1 Quantity produced 100.000 200.000 I machine hours 50.000 50,000 Facility. Direct Labour hours/100.000 100,000 material Handling Cet af moves 2.000 4,000 Batch Engineering (hours) 10,000 5,000 product Receiving (number forders processed 1/250 500 Batch set ups 160 120 Batch I maintaininchours 4,000 2,000 product wed) I kilowatt-hours (25,000 25,000 facility I inspecting 13,000 | 11000 Batch (number of hours Additionally, the following overhead costs are reported for the activities associated with the two products: Activity Cost I material handling 1$ 120,000/ maintaining equipment $ 80000 Tprodud power 1301000 Annual depreciation $ 60,000 (machine 100/000 Reciering $ 30,000 19961000 1601000 | Engineering setuplicting calculate the plant wide rate using direct labour hours as the driver and the correspondin overhead allocation per unit for each produced Q (2) Calculate the over head allocation pranit for each product using activity based costing
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