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Assignment Question: Printing Ltd manufactures printers. At the moment the business has two types of products on the market. the Compact and the W. In
Assignment Question: Printing Ltd manufactures \"printers". At the moment the business has two types of products on the market. the \"Compact\" and the \"W". In order to remain m the business is looking at expanding the range of products in the next 12 months. The company currently uses a traditional costing system and allocates overhead costs based on an estimated 83,200 direct labour hours. The following cost information has been used as a basis for pricing decisions over the past year. The company has produced a total of 145,000 units. 60% are ofthe Compact and 40% are ofthe Multizmction. Perunit data Compact DIME] function Direct labour hours Direct labour cost per hour -- Selling Price $180 The recent cost report for the business shows that the ratio of prime costs to manufacturing overhead cost is approximately 1:3. The new Management Accountant Ms Andi is considering the use of Activity Based Costing to apply overhead and has collected some data [see below] but requires your assistance: Number of Events Activity Cost driver T333216 Compact firinlciihn Set-up Number of g $50,000 150 50 Special design Design hours $182,000 800 200 Packaging Packaging order $450,000 30.000 20.000 Machining Machining $l50,000 7.000 3.000 Note: (where necessary shown for each part. round off answer to 2 decimal places). ALL workings must be
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