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Use an activity-based costing system to calculate new costs and pmfitability of e?ch Of {he mur products (Schedule 1) under the systenm To design
Use an activity-based costing system to calculate new costs and pmfitability of e?ch Of {he mur products (Schedule 1) under the systenm To design the ABC systems, you have visited the two plards s,here you interiewed plant maaagers depanment supervisoE, and accountant. -fou also anal.vzed expense accounts and operations data Eased on the inteB,'ieVF and analyses, your tearn prepami descriptions of activities within each of the deparrnents in each plant (Exhibit 1) You also dedded to cmeate p\ard-sstairriug cost to you allocated factory costs that you decided could not accurately he allocated the ather depaymente Finally, you prepared an analysis and descliptiort of the costs in each cost pool (Exhibit 2) and allocated the costs of the eight cost pools as shov,Ti Schedle to the diffemlt depahmeats to the plantsugtain_ing cost poor Ta the design of the B C system you have to make decisions on the m Which cost diiver should be used for allocating the cosls of each eatl of the producls? Schedules 4 & S pretent labor hours and machine hours per tmit each product Schedule 6 lists the nun-Aher of batches for each product Schedule 1 lists the number for each product tx Should you charge the design and engineering support and marketing expenses to products or {hem as firm-vide costs? Schedules 7 & 8 present :ales time distiibution, and desi?Ji arid suppo:t time distribution If you decide to heat design arid enginee.ing and marketing as produ costs, use the Allocation Menu to select the cost drivers and charge the cog? the product5
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