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may i please get answers to these questions step by step asap? Question 2 Serge Corporation uses the following activity rates from its activity-based costing
may i please get answers to these questions step by step asap?
Question 2 Serge Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity cost Setting up cost$88,000 Assembly cost $40,000 Processing order cost $180,000 Data concerning two products appear below: Product X Product Y No of batches 70 30 No of assembly hours 170 No of customer orders 80 40 230 Required: a) Calculate the overhead rate? (6 marks) b) How much overhead cost would be assigned to Product X using the company's activity-based costing system? Show your work! (16 marks) c) Two students in a cost accounting class were arguing about the need to gather good unit cost information for manufacturing. One student, Travis, maintained that a firm producing and selling large quantities of relatively few products would have no need for an ABC system, since an ABC system is usually more expensive to implement than a volume-based system. Alicia countered that even firms with high-volume homogeneous products could benefit from a cost management technique like activity- based costing (ABC). What is choice, discuss and present justifications for your answer. (Word limit: 300 words - 9 marks) Step by Step Solution
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