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Allocation of the overhead cost to Jobs using Budgeted Direct Labour Hours as a basis and calculation of Manufacturing cost per unit:::: The production manager

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Allocation of the overhead cost to Jobs using Budgeted Direct Labour Hours as a basis and calculation of Manufacturing cost per unit:::: The production manager had expressed his dissatisfictioa with the accuracy of the sirpple job conting system, Upon returning to the production office, He diacused iter The producboe manager and the coctroller werked togetber and provided iaformation la Table 2. The trble identifiet the six activity cosf pools asad thrir assuciased manufacturiag overhend coats. Topether, they comprase toral budgeted manufactiring overhend cots for 2021. uing Overhesd Worlazg together ower the next two days, they compiled and ofganized the intormatioe in Table 3 regarding the activity cost dirivers and activity usage by each prodact: They decided in assign manufscturing overhead to joulacta based upon the activities that cause borse overhear cesis. oriber eosing aysteca. (5.5 marks) Allocatien of oyerhead costs under simple iobserder costing Answrec the following: a Compufe Budgeted Mifg. Overhead Rafe w b Aliocation of Min. Owerheacto ricotucts: Product A = Product 8= Product C= Product D= 4. Compute Tiet Manutacturing Cost of nroductsw A Compute Coer per unt br each apauerw Thatks) Allocation of overhead costs under Activity.Based Costion. (ABC) Answer the following: b. Compist Total Manutacturing overteed of products: 4. Compute Total Manutacturing Coat of productuw d Compuse Cost per int sar each proacte * Which product is mare costly? i. Ritcommined which activity cost drvits should be foduced to reduce the cverfead costa?: Required (3): Compare the results in requirements 1 and 2.(3 marks) Do you agree with the controller in the Plant to eliminate the "D" product from the Plant's product line? and Why

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