In the weekly moeling wit the senior managernent leam the vice president cf munufacturing stated ithat "For years. I have been tealing you that yoce tradtional ample job-order cost syatem is broken. I never trusted them " to these product wing budgeted direct labor cost an an allocation buie The Plant's 2021 budgeted manufacturing costs ineluded the following amounts: - Total tradectad discet materal conis of S720,000 - Total botectad direct manufacturing labor costs of 5872,000 - Total brilketed marifacturing overthead costs of \$1.680,000 mamifacturing overhead costs. Tozedhec, they compeise total but geted manifacturieg overhead costs for 20?1. They decised to assign mamsfacturing ovorhead to products based upon the activities that cause those avertead costs. Reguired (1): Using the imformation in table 1, provide use missing informatien by allocating the manufactuning overhead to the four prodoces usiag the suspie job-ofder costing system, 5.5 marks ) Allocation of oyerhead costs under simple job-order costing Answer the following: a. Compute Budgeted Mfg. Overhead Rate = b. Allocation of Mig. Overhead 10 products: Product A= Product B= Product C= Product D= c. Compute Total Manufacturing Cost or products d. Compute Cost per unit for each product= Required_(2): Using lie infortuation in the fablen 2 and 3 , allocate the manufacturing overnead costs to the fout prodiucts ming Activuy-Basd Costing (ABC) (14, 5 marks Allocation of overthead costs under Activify-Based Costing. (ABC) Answer the following: B. Compute Total Manufacturing ovemead of products= 6. Compute Total Manufacturing Cost of products d. Compute Cost per unit for each product= e. Which product is more costly? f. Recommend which activity cost drivers shoud be reduced to reduce the overhead costs? Required (3) : Compare the results in roqurements 1 and 2.(3 marks) Do you agroe with the controller in the Plant to eliminate the "D" product from the Plant's produet liae? and Why? Answer: In the weekly moeling wit the senior managernent leam the vice president cf munufacturing stated ithat "For years. I have been tealing you that yoce tradtional ample job-order cost syatem is broken. I never trusted them " to these product wing budgeted direct labor cost an an allocation buie The Plant's 2021 budgeted manufacturing costs ineluded the following amounts: - Total tradectad discet materal conis of S720,000 - Total botectad direct manufacturing labor costs of 5872,000 - Total brilketed marifacturing overthead costs of \$1.680,000 mamifacturing overhead costs. Tozedhec, they compeise total but geted manifacturieg overhead costs for 20?1. They decised to assign mamsfacturing ovorhead to products based upon the activities that cause those avertead costs. Reguired (1): Using the imformation in table 1, provide use missing informatien by allocating the manufactuning overhead to the four prodoces usiag the suspie job-ofder costing system, 5.5 marks ) Allocation of oyerhead costs under simple job-order costing Answer the following: a. Compute Budgeted Mfg. Overhead Rate = b. Allocation of Mig. Overhead 10 products: Product A= Product B= Product C= Product D= c. Compute Total Manufacturing Cost or products d. Compute Cost per unit for each product= Required_(2): Using lie infortuation in the fablen 2 and 3 , allocate the manufacturing overnead costs to the fout prodiucts ming Activuy-Basd Costing (ABC) (14, 5 marks Allocation of overthead costs under Activify-Based Costing. (ABC) Answer the following: B. Compute Total Manufacturing ovemead of products= 6. Compute Total Manufacturing Cost of products d. Compute Cost per unit for each product= e. Which product is more costly? f. Recommend which activity cost drivers shoud be reduced to reduce the overhead costs? Required (3) : Compare the results in roqurements 1 and 2.(3 marks) Do you agroe with the controller in the Plant to eliminate the "D" product from the Plant's produet liae? and Why
