Question
ssembly (Labour Hours) Quality Control (Inspection Hours) Pickling (pickling days) Estimated MOH 20,000 13,000 8,000 41,000 Total Expected Activity Dill Jumbo 7,000 2,000 350 Required:
ssembly (Labour Hours) Quality Control (Inspection Hours) Pickling (pickling days) Estimated MOH 20,000 13,000 8,000 41,000 Total Expected Activity Dill Jumbo 7,000 2,000 350 Required: a. b. The different method and the different costs (if there is a difference) Looking at the two costing methods and the selling price, what would you suggest to Perter about his selling price? TOTAL $ 1. Under the traditional costing method: a. Compute the predetermined overhead rate b. Determine the total per jar cost for each product 2. Under the activity based costing: a. Compute the activity rates for each activity b. Determine the total per jar cost for each product $ $ $ 22,000 5,000 500 15,000 3,000 150 3. Compare and comment on the answers from #1 and 2 keeping
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