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Question 3 After reviewing the activity-based costing product margin the four friends have decided to allocate the manufacturing overhead and the sales and administrative expenses.

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Question 3 After reviewing the activity-based costing product margin the four friends have decided to allocate the manufacturing overhead and the sales and administrative expenses. For allocating the manufacturing overhead, the whole expense leasing the BBQ was allocated to the sales of barbecues whereas the whole expense with leasing the balloon pump was allocated to the sales of balloons. For the expenses for leasing the gazebo and gelng the permit, the amount was split evenly between the two products. Required a) Prepare an activity-based costing prduct margin for the sales of barbecues (suggestion: use Exhibit 7-11 as a model) including the allocated manufacturing overhead and sales and administrative tasks. (8 marks) b) Prepare an activity-based costing product margin for the sales of balloons (suggestion: model) including the allocated manufacturing overhead and sales and administrative tasks. (8 marks) use Exhibit 7-11 as a Question 3 After reviewing the activity-based costing product margin the four friends have decided to allocate the manufacturing overhead and the sales and administrative expenses. For allocating the manufacturing overhead, the whole expense leasing the BBQ was allocated to the sales of barbecues whereas the whole expense with leasing the balloon pump was allocated to the sales of balloons. For the expenses for leasing the gazebo and gelng the permit, the amount was split evenly between the two products. Required a) Prepare an activity-based costing prduct margin for the sales of barbecues (suggestion: use Exhibit 7-11 as a model) including the allocated manufacturing overhead and sales and administrative tasks. (8 marks) b) Prepare an activity-based costing product margin for the sales of balloons (suggestion: model) including the allocated manufacturing overhead and sales and administrative tasks. (8 marks) use Exhibit 7-11 as a

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