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Please show ALL work and provide accurate answers. Wang Enterprises makes a variety of products. The company has been using a traditional method of allocating
Please show ALL work and provide accurate answers.
Wang Enterprises makes a variety of products. The company has been using a traditional method of allocating MOH using MH as the allocation base Total MOH for the year is expected to be Total MH for the year is expected to be 879,403 25,040 The company is considering using activity-based costing for allocating MOH to their products. You have received the following information Activity Cost Pool Activity Measure DLH MH Cubic feet Total Activit Activit Prepping $ 250,850 Assembly $ 525,840 Packaging $ 102,713 7,250 25,040 185,800 You also have the following information for one of their products, Deluxe Pens: Expected production Expected DLH Expected MH Product dimensions 50,000 boxes of Deluxe Pens 1,750 per year 4,000 per year 0.25 per unit (in cubic feet) HINT: Pay close attention to the measure of activity when calculating your answers. 1. Determine the activity rate under ABC for: Prepping Assembly Packaging 2. How much MOH would be allocated to Deluxe Pens, per unit, under ABC? 3. How much MOH would be allocated to Deluxe Pens, per unit, under the traditional methodStep by Step Solution
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