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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.

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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: Cost-allocation base Indirect manufacturing cost pool Budgeted cost- allocation rate 1. Materials handling 2. Machining 3. Assembly 4. Inspection Component parts Machine-hours Assembly line-hours Inspection hours Dkr 8 per part DK 68 per hour Dkr 75 per hour 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. Henriksen's 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 activity-based job-costing system? just focus on Q3 plz

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