Question Completion Status: QUESTION 44 10 points Save Accountants have identified the following three activities and related cost drivers for indirect manufacturing costs for a small cordless vacuum. Activity Cost Driver Estimated Cost Materials handling Direct materials cost $ 8,200 Engineering Engineering change notices $20,000 Power Kilowatt hours $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 are shown below. A B C Total Direct materials cost $30,000 $75,000 $100,000 $205,000 Direct labour cost 15,000 15,000 25,250 $ 55,250 Kilowatt hours 24,000 10,000 30,000 64,000 Engineering change notices 5 8 3 16 a. Compute the indirect manufacturing cost (overhead) allocated to each product with the activity-based costing system. (8 marks) b. Suppose all indirect manufacturing costs (overhead) had been allocated to products in proportion to their direct-labour costs (i.e. the "traditional" method). Compute the indirect manufacturing allocated to each product. (2 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). ... BIUS Paragraph Arial 10pt v A Font Sizes EEXX ABC V X EXE