Gamesmanship Pty Ltd manufactures two computers; The Gamer and the The Workdesk. Initial calculations completed by the cost accountant have provided the following information for year ending 2020;

1. Under the ABC method; the total over-head applied to the product, The Gamer for year ending 2020 is closest to; (2 marks)

Select one:

a. $583,871

b. $678,350

c. $464,530

d. Insufficient information has been provided; it is not possible to determine the allocation of the overhead.

2. Under the Traditional method; using an indirect cost rate of $293.37 per direct labour hour. The PER UNIT over-head applied to the product The Workdesk for year ending 2020 is closest to (1 mark)

Select one:

a. Insufficient information has been provided; it is not possible to determine the per unit allocation of the overhead.

b. $54.21

c. $37.29

d. $79.63

Estimated number of Cost Driver Activity Indirect cost rate The Gamer The Workdesk Designing Activity Cost driver No of design adjustments Machine Hours $455.00 670 127 Fabrication $12.00 600 700 Direct Labour Hours $48.00 1100 950 Assembly Quality Control No of tests $112.00 890 224 The Workdesk Units produced Direct material per unit Direct labour per unit The Gamer 2000 $ 420.00 3500 $ 360.00 $ 89.00 $ 72.00