CH 05 #/activity/question-group/kEZA... Saved Help Save & Exit Check my Exercise 5-27 (Algo) Activity-Based Costing in the Fashion Apparel Industry [LO 5-2,5-3] Fleet Street Incorporated a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (34%), skirts (30%), dresses (12%), and other (24%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is 2.24 per unit produced. The results for the trousers line, using the volume-based approach, are as follows: k nces Number of units produced Price (all figures in ) Total revenue Direct materials Direct labor Overhead (volume-based) Total product cost Nonmanufacturing expenses Total cost Profit margin for trousers 12,000 26.21 314,520 51,800 172,900 26,880 251,580 46,900 298,480 16,040 Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities. The total conversion cost (labor and overhead) for the eight activities, after allocation to the trousers line, is as follows: Pattern cutting Grading Lay planning Sewing Finishing Inspection Boxing up Storage 31,450 27,100 26,490 30,100 20,209 8,900 4,800 9,600 Required: References Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities. The total conversion cost (labor and overhead) for the eight activities, after allocation to the trousers line, is as follows: Pattern cutting Grading Lay planning Sewing Finishing Inspection Boxing up Storage 31,450 27,100 26,400 30, 100 20, 200 8,900 4,800 9,600 Required: 1. Determine the profit margin for trousers using ABC. Profit margin