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hi could i have some assistance Problems 1. Realwood Pty Ltd manufactures two types of timber felling machines Toppler and Muncher. The company is currently

hi could i have some assistance

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Problems 1. Realwood Pty Ltd manufactures two types of timber felling machines Toppler and Muncher. The company is currently using a traditional costing system with machine hours as the cost driver. The company is considering whether to use the activity-based costing (ABC) method to allocate overhead costs to products. Budgeted overhead costs of the upcoming accounting period follow: Activity Total budgeted Activity driver Budgeted level for activity cost activity driver- Warehousing $55 000 Number of material 550 moves moves Machine $4}I 000 Number of 16 000 hours maintenance machine hours Setup $250 000 Number of 400 runs production runs Information for the two products completed during the period is as follows: Mueller Topplel' Number of material moves 320 230 Number of production runs 60 100 Total machine hours 10500 5500 Units completed 3000 1000 Direct material cost per unit $20 $35 Direct labour cost per unit $40 $70 Required: a) Calculate the unit cost of each product if the conventional costing approach is used. b) Determine the cost of producing each product if activity-based costing is used

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