LGI's production managers recently attended a course at UMGC where they learned about ABC costing. They propose allocating the total fixed costs between Standard and Deluxe boxes based on this method . They collected information about the cost drivers and the break up of the total costs in Table 1 below. How much overhead would be allocated to Standard and Deluxe Boxes ( in total and per unit) using this method? Show all supporting calculations. Complete the grey spaces/.. WHat is the cost of deluxe boxes? How to find the forumala
Table 1
Manufacturing overhead	$ Amount	Cost driver	Standard Box	Deluxe Box	Totals of Drivers	Cost of Deluxe Boxes	Cost of Deluxe Boxes	Total Cost Check (must agree to Column B7:B14)
Depreciation	$47.00	Square feet	7,000	80,000
Maintenance	$50.00	Direct Labour Hours	1,000	9,000
Purchase order processing	$9	Number of purchases orders	500	4,500
Inspection	$34	Number of employees	1,000	6000
Indirect Materials	$5.00	Labour Hours	1,000.00	9,000.00
Supervision	$7.00	#of inspections	200	800
Supplies	$4.00	Units manufactured	1,000.00	9,000.00
Total Allocated costs	$156.00	W
Number of boxes per year			108	18
Allocated Cost per Box
Question 1
	Deluxe Boxes	Deluxe Boxes	Total
Sales
Less: Variable Costs
Contribution
Less: Fixed Costs
Profit
Profit %