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Need help answering this exercise 4. ABC, Process Costing. Jasper Company produces two type of bikes - regular and electric - and operate at capacity.

Need help answering this exercise

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4. ABC, Process Costing. Jasper Company produces two type of bikes - regular and electric - and operate at capacity. The following data pertain to the two products. Regular Bike Electric Bike Annual production (units) 6,000 2,000 Direct material costs 2,400,000 1,000,000 Direct manufacturing labor costs 1.320.000 520.000 Direct manufacturing labor-hours 33,000 13,000 Machine-hours 18,000 18,000 Number of production runs 60 100 Inspection hours 1.500 500 Total manufacturing overhead costs are as follows: Machining costs 4,500,000 Setup costs 1,560,000 Inspections costs 1.300.000 Answer the following questions assuming the company is using a company-wide overhead rate based on direct labor costs: a. The company-wide overhead rate is: b. The amount of total manufacturing overhead allocated to the regular bikes is: c. The amount of total manufacturing overhead allocated to the electric bikes is: d. The amount of allocated manufacturing overhead per regular bike is: e. The amount of allocated manufacturing overhead per electric bike is: f. The product cost per regular bike is: g. The product cost per electric bike is:Answer the following questions assuming the companv is using Activity Based Costing: a. Choose a cost driver for each overhead cost pool. List your selections: b. Calculate the cost driver allocation rates: c. The amount of total manufacturing overhead allocated to the regular bikes is: d. The amount of total manufacturing overhead allocated to the electric bikes is: e. The amount of allocated manufacturing overhead per regular bike is: f. The amount of allocated manufacturing overhead per electric bike is: g. The product cost per regular bike is: h. The product cost per electric bike is: i. What are the driving factors that explain the difference in product cost between ABC and the traditional cost system? j. Base on your findings from the ABC costing system, what management decisions would you recommend to enhance profitability and efficiency, that is, exploit ABC for ABM (Activity Based Management)? k. Explain under what circumstances an ABC costing system will not have much added value compared with a traditional costing system? In your answer also consider the costs/benefits of an ABC costing system

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