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Question 1 - 20 marks Tarefasters is a manufacturer of air purifiers systems in Singapore. It produces to types of air purifiers. The best model
Question 1 - 20 marks Tarefasters is a manufacturer of air purifiers systems in Singapore. It produces to types of air purifiers. The best model is meant for home we were the chanced model is meant for commercial use At present it overhead costing system allocates indirect cost to products using machine heurs as an allocation base. However, the Chief Accountant of the company has decided to introduce an Activity Based Costing system in a bid to improve overhead allocation to the products The direct continued for the units produced last year was as follows Basic Enhanced S 5 Units 10,000 Duct Material 3.000.000 100.000 Direct Labour 400,000 135.000 The Band it was predm5564 and the End of Sos por el The company's sales policy tequire that each product achieve a profit margin of 19% 3.000 The following data luwe been collected for all indirect cost Activity Annual cost 5 Quality Inspectie 0.000 Setup COM 650,000 Contact Ship WOOD Stores Handling out 5000 Factory Overhead on Total 0000 The following data has also been collected by the research team navodi implementation of the ARC system Total Basic Enlaced Number of inspections 10.000 000 Number of su 500 100 100 Number of lading Hours Stores 39.000 Lach 40 foor contamer und can od 200 units 150 chicod units Tac Basic unit requires 2 handling on the Store Broqi 2 machine hours to produce where the Enhanced requires machine hoon to produce 2 Required: 4) Compute the people the practing the indist o pohod is Marka Prepare a dedicating the pro profit pero huch peat wingsvily coming to Mark) .) do ADC, who shem House India Asteptand behind the
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