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Super Chairs ( SC ) manufactures funky chairs. SC has identified various activity centres to which overhead costs are assigned. The cost pools for these
Super Chairs SC manufactures funky chairs. SC has identified various activity centres to which
overhead costs are assigned. The cost pools for these centres and their selected cost drivers for
are as follows:
SCs products and other operating statistics follow:
SC uses direct labour hours to allocate manufacturing overhead under traditional costing.
Tasks: Answer the following questions:
Under traditional costing:
a What is the predetermined overhead rate? marks
b What is the total amount of manufacturing overhead allocated to Metaz Chairs? marks
c What are the total product costs for all Metaz Chairs? marks
d What are the product unit costs for a Yak Chair? marks
Under activitybased costing:
e What are the activitybased overhead rates for the three cost pools? marks
f What is the total amount of manufacturing overhead allocated to Metaz Chairs? marks
g What are the total product costs for all Metaz Chairs? marks
h What are the product unit costs for a Yak Chair? marks
i What are the product unit costs for a Latko Chair? marks
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