Friedman Company uses JIT manufacturing. There are several manufacturing cells set up within one of its factories. One of the cells makes stands for flat-screen televisions. The cost of produc- tion for the month of April is given below. Cell labor Direct materials Overhead Total

During May, 30,000 stands were produced and sold. Required: $ 60,000 150,000 120,000 $330,000

1. Explain why process costing can be used for computing the cost of production for the stands.

3. Explain how activity-based costing can be used to determine the overhead assigned to the cells