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STION 13 10 points Save Answer le Inc manufactures electric parts of computer. Recently, the company's South-Eastern plant has adopted the robotics-intensive environment for the

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STION 13 10 points Save Answer le Inc manufactures electric parts of computer. Recently, the company's South-Eastern plant has adopted the robotics-intensive environment for the production process. Previously, the production process was a I-labour intensive. Therefore, management has decided to change its overhead costing systems. The company has moved from the direct-labour-based overhead rate to an activity-based costing system. Mr Turner, controller of the company, has chosen the following activity cost pools and cost drivers for factory overhead: Overhead Cost Information Cost Driver Driver Activity ase orders $ 335,000 Number of orders 45,000 costs 270,000 Number of setups 25,000 ng costs 350,000 Number of tests 20,000 ine maintenance 760,000 Machine hours 45,000 red ulate the overhead rate for each cost driver. (2 Marks) rder for 50 ceramic dish sets had the following requirements: umber of purchase orders 15 Imber of setups 20 imber of product tests 15 achine hours 180 nuch overhead should be assigned to this order? (2 Marks) ld you expect the new activity-based system to allocate a different amount of overhead? (2 Marks) uss why using an activity-based system could provide better information to decision makers regarding the setting of sales prices. What other advantages might Granville Inc realise from the new costing ? (4 Marks)

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