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of All Wood Corporation manufactures dining chairs and tables. The following information is wat Activity Volume Total Activity Dining Chairs Tables Cost Machine setups 50

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of All Wood Corporation manufactures dining chairs and tables. The following information is wat Activity Volume Total Activity Dining Chairs Tables Cost Machine setups 50 75 $9,000 Inspections 300 190 $7,590 Labour hours 700 300 All Wood is considering switching from one overhead rate based on labour hours to activity-based costing. Instructions Perform the following analyses of overhead for these two products: a) Calculate total machine setups and inspection costs assigned to each product, using the single overhead rate of direct labour. (4 marks) b) Calculate total machine setups and inspection costs assigned to each product, using activity-based costing. (4 marks) c) Comment on your findings. (4 marks)

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