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Jumbe Part Two: Answer Only Two Question of Following Question Thres Zitriks Corp, manufactures two sizes of ceramic paperweights. regular and jumbo. The following information
Jumbe Part Two: Answer Only Two Question of Following Question Thres Zitriks Corp, manufactures two sizes of ceramic paperweights. regular and jumbo. The following information applies to their expectations for the planning period Cost Pool Overhead Costs Activity-cost driver Materials handling $ 45,000 90,000 orders Machine maintenance $300,000 15.000 maintenance hours Setups $270,000 30,000 setups Inspections $85.000 10.000 inspections Total support costs $200.000 Regular Estimated units to be produced 8000 10000 Cost of DM per unit S20 S30 Cost of DL per unit $10 S8 Number of orders 30000 60000 Machine Hours 6000 9000 Number of Setups 10000 20000 Number of Inspections 6000 4000 Required: Compute the total cost of two products, Regular and Jumbo using 1. Traditional costing system and machine hours is activity base to allocate OH cost of $700.000 2. ABC system to allocate OH
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