The Bahinain Farniture Products Plaet produces foar products (chains): A, B, C. \& D. After assessing the profitability of each product based upon the analymas pepared by the plsat's costroller, the coatreller suggested to elimenate the "D" product from the Plan's produet line. In the weekiy meoting with the senior management toam, the vice president of manufucturing stated that: "For years, I have been feiling you that your traditional simple job-order cost system is brohen, I never trusted them." At the meetiag. the owner and CEO announced the decision to eliminate the "D" product from the Plant"s product line because this product is more costly than the other products produced, Curreatly, the Plant wses normal job-order costing to accoust for its mamafactaring costz. Its job-costing system has two difect-oost calegories (direct thaterials and direct manufacturing labot) and one manufacturing overhead cost pool. The Plant's simple joh costiag system allocates the manafacturing overtiead costs to these nrodacts using budgeted direct labor cost as an allocation base. The Plant's 2021 budgeted manufacturing costs included the following amounts: - Total budgeted direct material costs of $720.000 - Total budgeted direct manufachuring labor costs of $672,000. - Total butaned manutacturing overtiead costs of 51,680,000 Table I pretents the Plaet's 2021 budyeted rakmufacturing costs, by product and in total. IUsing the simale inh-Avilar anasimal The production manager bad expressed has drssatisfactica with the atocuracy of the simple job costing syitera. Upon zefurning to the peofuction office. He discussed itar ditadvantages of the simple costigs system with the controller, he suggested that baine prodoct costs cer activity. based cost devers wonld resalt in more reliable cost dat thian that provided by the Plant's simple job-order costing system. He referrod to the oow suzgestod costing system as activity-based costing (ARC) The peoduction manager and the controlier woeked rogether and provided iaformation ia Table 2 . The table identifiet the six activiry cost pools asod their arsociased manufacturiag overhead cocts, Togecher, they comprise fotal budgeted inansafacturing ovethead cose for 2021. They decided to assign manafactaring cretbead to products based upon the activities that cause those overhead costs: Reguired. (1) L Using the informatioe in table 1. provide the missing information by allocating the manufacfuring overhoad to the four profucts using the ningle jeb. orter costing sywent (5 5 marks) Allecation of overhead costs under simple jobcorder costing Answer the following: a. Compute Budgefed MMg. Overhead Rate = b. Allocation of Mig. Oremead to producte: Produet A= Product B= Product Ca Product D= c. Compute Total Manulacturing Cost or products" fratkis) Answer the following: Allocation of overhead costs under Activity=Based Costing (ABC) 2. Combute totel Makiaching ceat of producto a. Combute Cett per une kar euch aredicte e. Which product is mate costly? Reguifedi(3): Answet: The Bahinain Farniture Products Plaet produces foar products (chains): A, B, C. \& D. After assessing the profitability of each product based upon the analymas pepared by the plsat's costroller, the coatreller suggested to elimenate the "D" product from the Plan's produet line. In the weekiy meoting with the senior management toam, the vice president of manufucturing stated that: "For years, I have been feiling you that your traditional simple job-order cost system is brohen, I never trusted them." At the meetiag. the owner and CEO announced the decision to eliminate the "D" product from the Plant"s product line because this product is more costly than the other products produced, Curreatly, the Plant wses normal job-order costing to accoust for its mamafactaring costz. Its job-costing system has two difect-oost calegories (direct thaterials and direct manufacturing labot) and one manufacturing overhead cost pool. The Plant's simple joh costiag system allocates the manafacturing overtiead costs to these nrodacts using budgeted direct labor cost as an allocation base. The Plant's 2021 budgeted manufacturing costs included the following amounts: - Total budgeted direct material costs of $720.000 - Total budgeted direct manufachuring labor costs of $672,000. - Total butaned manutacturing overtiead costs of 51,680,000 Table I pretents the Plaet's 2021 budyeted rakmufacturing costs, by product and in total. IUsing the simale inh-Avilar anasimal The production manager bad expressed has drssatisfactica with the atocuracy of the simple job costing syitera. Upon zefurning to the peofuction office. He discussed itar ditadvantages of the simple costigs system with the controller, he suggested that baine prodoct costs cer activity. based cost devers wonld resalt in more reliable cost dat thian that provided by the Plant's simple job-order costing system. He referrod to the oow suzgestod costing system as activity-based costing (ARC) The peoduction manager and the controlier woeked rogether and provided iaformation ia Table 2 . The table identifiet the six activiry cost pools asod their arsociased manufacturiag overhead cocts, Togecher, they comprise fotal budgeted inansafacturing ovethead cose for 2021. They decided to assign manafactaring cretbead to products based upon the activities that cause those overhead costs: Reguired. (1) L Using the informatioe in table 1. provide the missing information by allocating the manufacfuring overhoad to the four profucts using the ningle jeb. orter costing sywent (5 5 marks) Allecation of overhead costs under simple jobcorder costing Answer the following: a. Compute Budgefed MMg. Overhead Rate = b. Allocation of Mig. Oremead to producte: Produet A= Product B= Product Ca Product D= c. Compute Total Manulacturing Cost or products" fratkis) Answer the following: Allocation of overhead costs under Activity=Based Costing (ABC) 2. Combute totel Makiaching ceat of producto a. Combute Cett per une kar euch aredicte e. Which product is mate costly? Reguifedi(3): Answet