Dear Chegg's expert, please take note that this question is NOT SAME as the other Chegg's post.

The Jackson Company has always allocated all overhead costs to products based upon the number of units produced. Over the years overhead costs have grown enormously and the firms profits have been falling. During this same time the firm has substantially broadened the lines of products it produces.

Jackson Company produces four Products of, J-275, R-895, T-28A and Y-477.

During the past year overhead amounted to RMB1.65 million. A study reveals that RMB350,000 of this is primarily depreciation on buildings and equipment, heat, light, and similar common costs. The remaining RMB1,300,000 is primarily for salaries for people who manage the flow of production, production schedulers, expeditors, equipment setup workers, and others needed to modify production lines whenever a department switches from manufacturing one type of product to another.

The following historical records have been developed for these production expeditors.

OVERHEAD: RMB 1,650,000

DEPRECIATION: RMB 350,000

SALARIES: RMB 1,300,000

Year	Total Units Produced	Number of Product Lines	Number of Expeditors	Expeditors Salaries
2015	2,400,000	780	4	RMB184,000
2016	2,600,000	1140	6	282,000
2017	2,750,000	1650	9	436,500
2018	2,550,000	2400	12	606,000
2019	2,700,000	3600	18	927,000
2020	2,500,000	5000	25	1,300,000

The production in 2020 and the Direct Costs incurred for a small sample of the firms products are summarised below:

	Product
	J-275	R-895	T-28A	T-28A
Total Number of Units 2,500,000	1,200,000	400,000	100,000	800,000
Material costs	RMB235,000	RMB590	RMB2,800		RMB50,000
Labour Costs	RMB65,000	RMB80	RMB1,100		RMB10,000
Total Number of Product Lines 5000	1600	650	850			1900

Required

a. Develop the cost of each 4 Products using the firms current (2020) Allocation Base.

(Please attach your calculation details)

b.Develop two allocation bases, one spreading common costs over units produced and a second spreading production expediting costs over product lines. Determine the cost of each 4 Products using these two new rates.

(Please attach your calculation details)