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fn Chapter 4 Cost Management Strategies The Uniform Clothing Company manufactures school uniforms. Management would like information on the profitability of each individual product line

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fn Chapter 4 Cost Management Strategies The Uniform Clothing Company manufactures school uniforms. Management would like information on the profitability of each individual product line (pants, dress shirts, cardigans and skirts). The company has provided financial information regarding the four products and the activities involved in the manufacturing Skirts Pants Dress Shirts Cardigans $210,000 $165,000 1,300 1,760 45,000 $300,000 $120,000 Revenue Direct Costs Number of Labor Hours Number of Machine Hours Items Sold 200,000 370,000$99,000 2,000 1,500 1,900 155,000 1,250 2,000 95,000 1,700 100,000 The company's overhead costs and cost allocation bases are indicated in the following table. Activity Total Costs Cost Allocation Base Production Finishing Customer Support $71,000 Number of machine hours 130,000 90,000Number of items sold Number of labor hours Assume the company uses an ABC system to allocate support costs to the four product lines. Calculate the operating income for each product line 2.5ALO n Dominion Bank (GD) uses the ABC system to determine the costs to operate its checking and savings ounts. The bank has three activities that support these product lines: processing, customer support and abase maintenance. activity allocation rates for 2019 a

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