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A consultant recently suggested that Platt switch to an activity-based costing (ABC) system, and identified the following cost breakdown for the upcoming year: Onder process

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A consultant recently suggested that Platt switch to an activity-based costing (ABC) system, and identified the following cost breakdown for the upcoming year: Onder process Pressup Material handling Machine depr & man Quality control Packing Recommendedos de Costs umber of orders $ 52 500 umber of production runs 210.000 pounds of materials and 175 000 machine hours 323000 80,000 number of units 14.000 Costner 125 oder 75 125.000 The 2000 poctis 200 000 In addition, management estimates 50,000 direct labor hours will be used in the upcoming year. Assume that the following activity took place in the first month of the upcoming year: Intermediats 8.000 SI 3.000 1.000 Advanced 3.000 S8000 2.000 Beginners Number of units produced 20,000 Direct material costs $20,800 Direct labor hours 500 Number of orders Number of production runs Pounds of material 8.000 Machine 100 Number of inspections Number of units shipped 18.000 3.200 1.500 200 7.500 2.300 Required: a. Compute the overhead costs for Beginners in the first month of the upcoming year using direct labor hours as the allocation base. (3 pts) b. Compute the overhead costs for Beginners in the first month of the upcoming year using activity-based costing. (6 pts)

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