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AL-Yarmouk company currently uses traditional costing procedures, applying $800,000 of overhead to products Model (A) and Model (B) on the basis of direct labor hours.
AL-Yarmouk company currently uses traditional costing procedures, applying $800,000 of overhead to products Model (A) and Model (B) on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow. Pool No. 1 pool No.2 pool No.3 (Cost base: DLH) (Cost base :SU) (cost base :PC) product Model (A) 1200 45 2250 Model (B) 2800 55 750 Pool cost JD 160000 JD 280000 JD 360000 Required 1- What is the overhead cost allocated to Model (A) by using traditional costing procedures?? 2-What is the overhead cost allocated to Model (B) using traditional costing procedures?? 3-What is the overhead cost allocated to Model (A) by using activity-based costing procedures ? 4- What is the overhead cost allocated to Model (B) by using activity-based costing procedures
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