Fleet Street Inc., a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (32%), skirts (25%), dresses (13%), and other (30%). Fleet Street has been using a volume-based rate to assign overhead to each product, the rate it uses is 2.52 per unit produced. The results for the trousers line, using the volume-based approach, are as follows Number of units produced Total revenue 12,000 Price (all figures in E) 26.48 341,760 Direct materials 56,200 Direct labor 187,600 Overhead (volume-based) 30,240 Total product cost 274,040 Normanufacturing expences 51,100 Total cost 325,140 Profit margin for trousers 16,620 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 fine, is as follows: Pattern cutting Grading 30,000 Lay planning 29,300 Sexing 33,400 LAL 22.566 e to search < P 25 Next > w E R D F S C D 7 D 5 T 6 Y G B T N a 9 K M 0 Home 11 P All Prisc