CONFIDENTIAL Auto Scroll Read Mode Background Screen Grab Find and Replace Highlight Note AURIGNALUITE Question 2...

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CONFIDENTIAL Auto Scroll Read Mode Background" Screen Grab Find and Replace Highlight Note" AURIGNALUITE Question 2 (28 marks: 35 minutes) a) PQR Industries manufactures dining chairs and tables. The following information is available Dining Chairs Tables Total Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labor hours 2,600 2,400 PQR is considering switching from one overhead rate based on labor hours to activity-based costing 1) Compute total machine setups and inspection costs assigned to each product, using a single overhead rate (4 marks) 1) Compute total machine setups and inspection costs assigned to each product, using activity-based costing 1) Comment on the above findings (5 marks) (3 marks) iv) Suggest THREE conditions that the company should switch from traditional cost accounting to activity-based cost accounting (6 marks) CONFIDENTIAL Auto Scroll Read Mode Background" Screen Grab Find and Replace Highlight Note" AURIGNALUITE Question 2 (28 marks: 35 minutes) a) PQR Industries manufactures dining chairs and tables. The following information is available Dining Chairs Tables Total Cost Machine setups 200 600 $48,000 Inspections 250 470 $72,000 Labor hours 2,600 2,400 PQR is considering switching from one overhead rate based on labor hours to activity-based costing 1) Compute total machine setups and inspection costs assigned to each product, using a single overhead rate (4 marks) 1) Compute total machine setups and inspection costs assigned to each product, using activity-based costing 1) Comment on the above findings (5 marks) (3 marks) iv) Suggest THREE conditions that the company should switch from traditional cost accounting to activity-based cost accounting (6 marks)