i need help correct if I'm wrong answer in order !! I need help with Memo partt !!
Here's Memo Part correct if I'm wrong !!
Default (Ca. M A1 100% $ 0.00 123 fx Traditional Costing E Traditionhl Costing 1 H G D 3 1 2 3 Step 1: Compute Predetermined Overhead Rate 4 POHR: $56.25 5 Estimated MOH: Estimated Allocation Base: $ 4,500,000 80,000 DLHS 6 2 Step 2: Apply MOH to 1 bag of coffee $ 2.81 9 10 $ 56.25 Applied MOH per bag 0.05 DLH per bag POHR: Actual Allocation Base per bag of coffee: 11 12 19 14 35 Step 3: Calculate Per Bag Cost of Coffee Mona Loa Direct Materials per bag 420 Direct Labor per bag 0.00 Applied MOH per bag 2.81 Total cost per a 7.31 Malaysian 31.20 0.30 2.81 6.31 16 17 10 90 20 Mamo Traditional Couting Mette Costing Comparison and Selling Pro e O 18 Type here to search -1 Default (ca. $ 0.00 123- . 11 5 A = D E K F G H Hers) ps) =) Activity Used By Malaysian 4 12 Activity Rate $ 200.00 $ 448.00 $ 160.00 $ 10.00 $ 12.50 $ 20.00 4 15 Allocated Overhead (in Total) 800.00 5376.00 640.00 150.00 93.75 30.00 7089.75 7.5 1.5 Mona Loa 70,000 bags Malaysian 1.500 bags Mona Loa $ $ $ s 4.20 0.30 0.41 4.91 Malaysian $ s $ $ 3.20 0.30 4.73 8:23 oral Conting Activity.flac od Coating- Comparison and Selling Price Mama search 0 15 18 19 10 m x O/ pou bre & 3 5 6. 7 8 9 0 - 00 123 Default (Ca.. ch 11 - =rl , D E F H 1 L M N 0 Hit Cost Mona Loa 4.20 0.30 2.81 7:31 Malaysian 3.20 0.30 2.81 6.31 Activity Based Costing Per Unit Cost Mona Loa Direct Materials per bag 4.20 Direct Labor per bag 0.30 Applied MOH per bag 0.41 Total cost per bag 4.91 Malaysian 3.20 0.30 4.73 8.23 9.503 8.203 6.38 10.699 by 30% El Casting Activity Couting Comparation and saying Price Momo Tearch G 18 10 K pause break 3 5 6 7 8 9 0 = E R. T Y Grammarly - . Normal No Space Heading Heading 2 Find Replace Select Tele Dictate Editor Open Grammarly Styles M VOICE N D Editing a P 5 T Make a recommendation for which method to use Discuss reasons why MOH costs shifted between the two methods. What are the root causes? Discuss drawbacks of using ABC Meme 611 B pouse break pra HO delete home poup podin 9 backspace um lk 0 * - P 7 8 9 After comparing the two systems we have concluded that Activity-Based Costing (ABC) is the better choice of both. As seen on the comparison and selling price page, the ABC method has a better total cost and a better sales price for bag as well. On the same page for Comparison and selling price, the traditional Costing Per Unit will increase the cost by 30%. The ABC method will lead to a better determination, and allocation for the total costs of products. In conclusion the company should move towards the Activity-Based Costing method as it is a better system. - 51