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Question 2: (10 points) B1, C1 Sameh manufacturing corporation has $300,000 of indirect materials and $500,000 of other indirect cost the company used ABC system
Question 2: (10 points) B1, C1 Sameh manufacturing corporation has $300,000 of indirect materials and $500,000 of other indirect cost the company used ABC system to distribute the overhead cost over the following activities: Activity Cutting unit Assembling unit Covering unit Processing orders Servings customers Indirect materials 30% 5% Other indirect 2017 30% Total Activity 50.000 unik 40.000 units/ year 20.000 units year 1.500 order year 2.000 customer year Item 30% 20% 30% 15% 10% 10 Instruction: 1- Allocate the overhead cost to the activity and calculate the cost per activity. (5 points) 2- Calculate total overhead cost if the company received 5 orders from 3 customers. each order 10 units. (5 points)
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