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QUESTION 44 Accountants denied the following three activities and related cost drivers for indirect manufacturing costs for a small corde Material handling Engineering Cost Driver
QUESTION 44 Accountants denied the following three activities and related cost drivers for indirect manufacturing costs for a small corde Material handling Engineering 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 product for a recent period Direct materials cost Direct labour cost Kilowatt hours Engineering change notices A $30,000 15,000 24,000 5 B $75,000 15,000 10,000 8 $100,000 25,250 30,000 3 Total $205,000 $ 55,250 64,000 16 a. Compute the indirect manufacturing cost (overhead) allocated to each product with the activity-based costing system. (8 mark b. Suppose all indirect manufacturing costs (overhead) had been allocated to products proportion to their direct-labour costs marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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