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QUESTIONI Marquis's Trophies makes trophies and plaques and operates at capacity. Marquis does large custonm orders, such as the participant trophies for the Mishawaka Little
QUESTIONI Marquis's Trophies makes trophies and plaques and operates at capacity. Marquis does large custonm orders, such as the participant trophies for the Mishawaka Little League. The controller has asked you to compare plant-wide, department, and activity-based cost allocations. Marquis's Trophies Budgeted Information For the Year Ended 30 November 2018 Total R24 250 R24 600 Forming Department Trophies Direct materials Direct labour Overhead costs Plaques R11 250 R9 000 R13 000 R15 600 Setup R12 000 R10 386 Total R11975 R18 300 Assembl Direct materials Direct labour Overhead costs Plaques R9 375 R10 500 R2 600 R7 800 Setup R23 000 R10 960 Other information follows: Setup costs vary with the number of batches processed in each department. The budgeted number of batches for each product line in each d tment is as follows: Forming department 40 43 116 103 y department Supervision costs vary with direct labour costs in each department. Required: 1.1 Calculate the budgeted costs of trophies and plaques based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs. 1.2 Calculate the budgeted cost of trophies and plaques based on departmental overhead rates, where forming department overhead costs are allocated based on direct labour costs of the forming department, and assembly department overhead costs are allocated based on total direct costs of the assembly department. 1.3 Calculate the budgeted cost of trophies and plaques if Tarquin allocates overhead costs in each department using activity-based costing. 14 Comment on the above results
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