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PLEASE ANSWERR :( Direct material Direct labour totally produced Standard model $15/unit $20/dlh (650 DLH) 800 units De Luxe model $15,000 (all) $30/dlh (150 DLH)
PLEASE ANSWERR :(
Direct material Direct labour totally produced
Standard model $15/unit $20/dlh (650 DLH) 800 units
De Luxe model $15,000 (all) $30/dlh (150 DLH) 500 units
assume the traditional costing sytem applied 80,000 $ of overhead costs based on direct labpr hours.
Calculate the full costs of both models under traditional and ABC system
Determine the selling price for the De Luxe model, if profit margin on selling price (markup on sales) is 25% for Traditional and ABC costing. Compare and comment.
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