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QUESTION 4 Accountants have identified the following three activities and related cost drivers for indirect manufactus Materials handling Engineering Power Cost Driver Direct materials cost
QUESTION 4 Accountants have identified the following three activities and related cost drivers for indirect manufactus Materials handling Engineering Power Cost Driver Direct materials cost Engineering change notices Kilowatt hours Estimated Cost $ 8,200 $20,000 $16,000 Three types of cordless vacuums are produced: A, B, and C. Direct costs and cost-driver activities for each Direct materials cost Direct labour cost Kilowatt hours Engineering change notices A $30,000 15,000 24,000 S B $75,000 15,000 10,000 8 C $100,000 25,250 30,000 B Total $205,000 $ 55,250 64,000 16 a. Compute the indirect manufacturing cost (overhead) allocated to each product with the activity-b h Suppose all indirect manufacturing costs overhead had been allocated to products in proportion
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