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Choose ONLY ONE question Question 1 Lake Corporation has received an order for handheld computers from Union Limited. The cost structure and other pertinent information
Choose ONLY ONE question Question 1 Lake Corporation has received an order for handheld computers from Union Limited. The cost structure and other pertinent information is given below: 400 units are to be produced Direct materials $60,000 Purchased part $80,000 Activity Activity cost rate Cost driver level Unit level Parts production $50.00 per machine hour 200 machine hours Assembly $20.00 per direct labour hour 100 direct labour hours Packaging & shipping S12.50 per unit 400 units Batch level Work cell setup S100 per setup 16 setups Product level Product design 560.00 per engineering hours 80 engineering hours 30 580.00 per testing hour Product simulation testing hours Facility level Building occupancy 200% of assembly labour cost Required: Calculate the total cost and the unit cost of the order. (9 marks) Explain the role of activity based systems in the management cycle. (6 marks) (in Describe the process costing system, identify the reason for its use, and discuss its role in the management cycle 15 marks) OR ENG
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