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Q3 KLM Compagny has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the
Q3 KLM Compagny has two departments, Assembly and Testing. You are given the following information about the costs of 5 activities that occur at the manufacturing plant monthly Activity Total Costs Material handling SAR200,000 Supervision of direct labor 126,000 Janitorial and cleaning 200,000 Machining 300.000 Total costs SAR826.000 Total number of units of Cost Driver 400,000 parts 90 employees 4,000 hours 7,000 machine hours The above activities are used by the two departments as follows: Assembly Material handling 200,000 parts Supervision of direct labor 40 employees Time spent cleaning 2,000 hours Number of machine hours 5,000 machine hours Testing 200,000 parts 50 employees 2,000 hours 2,000 machine hours a. How much of the material handling cost will be allocated to Assembly? b. What is the ABC allocation rate for supervision of direct labor
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