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Answer following questions based on the scenario of Zany Brainy Zany Brainy Corp. manufactures two types of lamps, Home size and Industry size lamps Company
Answer following questions based on the scenario of Zany Brainy Zany Brainy Corp. manufactures two types of lamps, Home size and Industry size lamps Company produces 10,000 Home size lamps and 2,000 Industry size lamps. Following is the data provided about these two products: Total Home size Industry size lamp lamp SIO SIS $16.00 $16.00 Direct materials per unit Direct manufacturing labour rate per unit Direct labour hours per unit 0.50 0.7 S110,000 200 50 1 3 Set up costs Lamps produced per patch Set up hour per patch Advertising costs Total indirect manufacturing costs Annual production S150,000 S260,000 10,000 2,000 vid W DI References Review View Help Tell me what you want to do o Editing - Open in Desktop App OU A A 12 A A B 1 U a The company's simple (traditional) costing system ws a single indirect cost pool and allocates costs to the two lamps on the basis of direct manufacturing labour-hours. Under this traditional system, determine total product cost per unit of each of the company's two products. (10 marks) b. The company's ABC system uses two indirect-cost pools. One cost pool is for set up costs and the other for advertising. Zany Brainy allocates set up costs to the two lamps based on setup labour-hours and advertising costs based on the direct manufacturing labour-hours. Under ABC system, determine total product cost per unit of each of the company's two products. (25 marks) Page Break Question 3: Capital Budgeting video 9 o gi
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