S-38. CHOOSING COST DRIVERS, ACTIVITY-BASED COSTING ACTIVITY-BASED MANAGEMENT. Pastel Caps (TS) is a dengnarat high-quality backpacks and puts. Each deupas is made in a balches. Each spring, IB comes out with new design for the backpack and the pose. The company use these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate al apacity. The equipment must be switched over to a new design and set up to perpare for the production of each new batch of products. When completed, ach batch of products is immediately shipped to a wholesale huipping costs wary with the number of sluipments Budgeted information for the art 25 follows Pe Bags Budget for dette for the Year Ended February 2009 Direccial Directiei SLS Direct manufacturing bers Die nacturing berbedacia Sehe SCO Sing 2. Design Plantines and artis Total 5152119 Other budget information follow tadi pada PEGAS Number bags 17 os To prodation Number olbanche 23 % R. Naberalda 2 2 Reguired 1. Identity the cost hierarchy level for each cost category 2. Identity the most appropriate cost driver for each cost category Explain briefly your choice of cost driver 3. Calculate the budgeted cost per unit of cost driver foracht category 4. Calculate the budgeted total cost and cont permite och product line 5. Explain how you could use the information in requirement to reduce costs S-38. CHOOSING COST DRIVERS, ACTIVITY-BASED COSTING ACTIVITY-BASED MANAGEMENT. Pastel Caps (TS) is a dengnarat high-quality backpacks and puts. Each deupas is made in a balches. Each spring, IB comes out with new design for the backpack and the pose. The company use these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate al apacity. The equipment must be switched over to a new design and set up to perpare for the production of each new batch of products. When completed, ach batch of products is immediately shipped to a wholesale huipping costs wary with the number of sluipments Budgeted information for the art 25 follows Pe Bags Budget for dette for the Year Ended February 2009 Direccial Directiei SLS Direct manufacturing bers Die nacturing berbedacia Sehe SCO Sing 2. Design Plantines and artis Total 5152119 Other budget information follow tadi pada PEGAS Number bags 17 os To prodation Number olbanche 23 % R. Naberalda 2 2 Reguired 1. Identity the cost hierarchy level for each cost category 2. Identity the most appropriate cost driver for each cost category Explain briefly your choice of cost driver 3. Calculate the budgeted cost per unit of cost driver foracht category 4. Calculate the budgeted total cost and cont permite och product line 5. Explain how you could use the information in requirement to reduce costs
