Carla Vista Inc. manufactures and distributes three types of water skis: beginner, intermediate, and advanced. Production is highly automated for the beginner model, whereas the intermediate and advanced models require increasing degrees of labour, depending on the shaping and finishing processes. Carla Vista applies all indirect costs to production using a single predetermined overhead (OH) rate based on direct labour hours (DLH). Management estimates that 34,200 DLH will be used in the upcoming year, at a rate of $13 per hour. Assume that the following activity took place in the first month of the new year:

EVERYTHING I WAS GIVEN IS HERE. PLEASE TRY YOUR BEST TO ANSWER. THANK YOU

		Beginner		Intermediate		Advanced
Number of units produced		22,800		9,100		3,400
Direct materials costs		$23,700		$14,800		$9,100
Direct labour hours		600		1,100		2,300
Number of orders		6		4		3
Number of production runs		2		2		3
Kilograms of material used		9,100		3,600		1,700
Machine hours		1,400		340		230
Number of inspections		3		3		3
Number of units shipped		20,500		8,600		2,900

A consultant recently suggested that Carla Vista switch to an activity-based costing system, and assembled the following information:

Activities		Recommended Cost Drivers		Estimated OH Cost					Cost Drivers
Order processing		Number of orders			$	68,000			100		orders
Material handling		Kilograms of materials used				685,000			137,000		kilograms
Machine depreciation and maintenance		Machine hours				483,000			23,000		hours
Quality control		Number of inspections				132,000			40		inspections
					$	1,368,000

Calculate the production costs for each product in the first month of the upcoming year, using direct labour hours as the allocation base.

		Beginner		Intermediate		Advanced
Materials		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Labour		enter a dollar amount		enter a dollar amount		enter a dollar amount
MOH		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount

Calculate the production costs for each product in the first month of the upcoming year, using activity-based costing.

		Beginner		Intermediate		Advanced
Materials		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Labour		enter a dollar amount		enter a dollar amount		enter a dollar amount
ABC overhead applied		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount

Compare your answers in parts (a) and (b). Is the overhead charged to each product the same under each method?

The amount charged to each product for overhead is select an option the samedifferent under the two methods.