Question
Misu corporation produce two types of flat screen tv the standard tv are designed for durability the company recently began producing the higher quality, higher
Misu corporation produce two types of flat screen tv the standard tv are designed for durability the company recently began producing the higher quality, higher grade model to appeal for dedicated watchers, since the introduction of high grade product profit has steadly declined managment blived that the accounting system might not be accuratly allocation costs to products
managment find that manafacuring overhead is currently assigned toproduct based on direct labor cost in products, the last monthes manufacuring overhead was $ 3000000 based on production of 3600 standard units and 1200 high grade units , dirict labor and direct material cost were
standard High grade total
direct labor $ 1740000 $ 660000 $ 2400000
direct material $ 1400000 1200000 2600000
managment beleived that overhead cost are caused by three cost drive
cost drive base cost assigned standard high grade total
Number of production runs $ 1200000 40 10 50
quality test performance 1500000 12 18 30
shipping ordered processed 300000 100 50 150
total manufacuring overhead $ 3000000
A how much of the overhead will be assigned for each product if theres three cost drive base are used to allocate overhead and what is the total cost per unit produced for each product
b how much overhead was assigned to each product if direct labor cost had been used to allocateoverhead , what is the total cost per unit produced for each product and is the total overhead cost affected by choice of traditional or ABC costing for overhead
C how might the results from using ABC is requirment
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