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overiead to its three customers based en moeh automotive parts in 2020 , actual variabie manufactiring overhead is 534,000 AP's smple costung system afocates varibifimaudacturng

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overiead to its three customers based en moeh automotive parts in 2020 , actual variabie manufactiring overhead is 534,000 AP's smple costung system afocates varibifimaudacturng (Cick the icon to vow the information) Read the requirements Data table Requirements 1. Compute the manufacturing overhead allocated to each customer in 2020 using the simple costing system that uses machine-hours as the allocation base. 2. Compute the manufacturing overhead allocated to each customer in 2020 using department-based manufacturing overhead rates. 3. Comment on your answers in requirements 1 and 2 . Which customer do you think was complaining about being overcharged in the simple system? If the new department-based rates are used to price contracts, which customer(s) will be unhappy? How would you respond to these concerns? 4. How else might AP use the information available from its department-by-department analysis of manufacturing overhead costs? 5. AP's managers are wondering if they should further refine the department-by-department costing system into an ABC system by identifying different activities within each department. Under what conditions would it not be worthwhile to further refine the department costing system into an ABC system

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