importannnt

Question 4 14 points QUESTION TWO 12 MarkCLOM Mokhtar Co sell window Treatments hade blinds and wings to both legional and local customers. The following in ration relates tots budgeted data for the year Regional Local Revenue 1400.000 3580,000 Direct materials.com 30,000 50.000 Direct labour cost 100.000 300,000 The total overhead con AS... Currently, overhead is allocated to the products on the basis of the directeur cou. Forma, the controles done not believe the proceed to current system and is considering implementing an ABC system. She asks her accountant to conduct some investigations and the results are as folio Estimated Activity overhead Scheduling and travel $25.000 Setup time 90,000 Supervision 60.000 Cost drivers Hours of travel Number of setups Direct labour cost The two products had the following expected use of cost drivers Regional 700 Local 500 Hours of travel Number of setups Direct labour cost 300 200 $100,000 $300,000 current memang sering memenarnemer Estimated Activity overhead Scheduling and travel 5.000 Setup me 0.000 Supervision 60.000 Cost drivers Hours of travel Number of setups Direct labour cost The two products had the following expected use of cou driver Hours of travel Number of setups Direct labour cost Regional 700 300 $100,000 Local 500 200 $300,000 Required a. Prepare income statements for each of the two product lines using the traditional costing system (4 Marks) b. Prepare income statements for each of the two product lines using the Activity Based Costing system (6 Marks c. Briefly explain why the performance of the two products is different under the two methods. Provide specific examples from the data to support your answer (A Marks [insert your answers to question 2 here]