Interpret the findings derived from the simple costing and the ABC and advice the CEO how might the management use the new cost information from its activity-based costing system to better manage the business.

Interpret the findings derived from the simple

costing and the ABC and advise the CEO on how

the management can use the new cost

information from its activity-based costing system to better manage the business.

Calculate the budgeted total costs and cost per unit for each product line using the simple costing method. Overhead Allocation Rate Under Simple Costing = Budgeted Overhead Cost / Total Production Hour Using the ABC system, calculate the budgeted cost per unit of cost driver for each cost category. Using the ABC system, calculate the budgeted total costs and cost per unit for each product line Assignment Requirement: Sheets & Homes (S&H) is a designer of high-quality curtains and bedsheets. Each design is made in small batches. Each spring, S\&H comes out with new designs for the curtains and for the bedsheets. The company uses these designs for a year and then moves on to the next trend. The products are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows: Table A Other budget information follows