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Tableco will manufacture two types of tables in the coming year-square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is
Tableco will manufacture two types of tables in the coming year-square tables and round tables. Tableco is considering introducing an activity-based costing system. Below is each activity, its cost and related activity driver: Activity Cost $ Activity driver Number of Machine setups 500 000 setups Materials 96 000 Number of parts handling Cutting 48 000 Number of parts 2100000 Direct labour Assembly hours Finishing 350 000 Number of units The level of activity estimated for the year is: Square Round Units to be produced 25 000 10 000 Number of setups 100 25 Number of parts per unit 32 16 Direct labour hours per unit 4 2 Total overhead cost allocated to Square tables in respect to Assembly if activity costing would be: Select one: $400000 $1750000 $525000 $1500000
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