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Question: Red Tree Manufacturing Inc., (the company') a children's play house manufacturer, is considering bidding on a job. In order to submit this bid, the

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Question: Red Tree Manufacturing Inc., ("the company') a children's play house manufacturer, is considering bidding on a job. In order to submit this bid, the company needs to calculate the total cost of performing this job. Financial details for the proposed job are as follows: Number of inspections 3200 Number of machine hours 1,800 Number of direct labour hours 5,000 Direct materials $63,000 Direct labour $54,000 Number of material moves 7,500 The company has three different categories of overhead. The overhead costs for each of the categories for the next year are as follows: Costs Cost Driver Expected Activity Materials handling $100,000 Material moves 12,500 Maintenance $180,000 Machine hours 24,000 Inspection $28,000 Inspections 4,000 Presently the company applies overhead using a plantwide predetermined overhead rate based upon a budgeted direct labour hours of 20,000. Using the above information answer the following questions. PART A: Assume the company is exploring the use of activity based costing, If the company used activity-based costing, the total overhead cost that would be assigned to the job for material handling is $ A If the company used activity-based costing, the total overhead cost that would be assigned to the job for maintenance is $ If the company used activity-based costing, the total overhead cost that would be assigned to the job for inspections is $ A If the company used activity-based costing, the total material costs plus the total direct labour costs assigned to the job would be $ A If the company used activity-based costing, the total cost of the job would be $ A/ PART B: Assume, instead, that the company continues to use the plantwide overhead application rate. If the company allocated overhead to the job using a plantwide overhead rate, the total overhead cost assigned to the job would be $ If the company allocated overhead to the job using a plantwide overhead rate, the total cost of the job would be $ A/ PART C: If the company decided to continue to use the plantwide overhead application rate, which of the following statements is true? Enter either A or B in the space provided. A. Use of the plantwide rate would cause the company to over-price the job. B. Use of the plantwide rate would cause the company to under-price the job. A/ Part D: Read the following statement and indicate if the statement is TRUE (enter T) or FALSE (enter F). It would be appropriate to adopt an ABC policy if there was a high cost associated with developing individual cost pools

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