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The Bahrain Furniture Products Plant produces four products (chairs): A, B, C, & D. After assessing the profitability of each product based upon the analysis

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The Bahrain Furniture Products Plant produces four products (chairs): A, B, C, \& D. After assessing the profitability of each product based upon the analysis prepared by the plant's controller, the controller suggested to eliminate the " D " product from the Plant's product line. In the weekly meeting with the senior management team, the vice president of manufacturing stated that "For years, I have been telling you that your traditional simple job-order cost system is broken, I never trusted them " At the meeting, the owner and CEO announced the decision to elimanate the "D" product from the Plant's product line because this product is mere coaly than the oher products produced Currently, the Plant uses normal job-order costing to account for its manufacturing costs. Its job. costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead) Cost pool The Plant's simple job costing system allocates the manufacturing ovethead costs to these products 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 5720,000 - Total budzeted direct manufacturing labor costs of $672,000 - Total budgeted manufacturing overhead costs of $1,680,000 The production manager had expressed his dissatisfaction with the accuracy of the simple job costing system. Upon returning to the production office, He discussed the disadvantages of the simple costing system with the controller, he staggested that basing prosuct costs on activity batsed cost divivers would result in more reliable cost data than that provided by the Plant's simple job-order costiag system. He referred to the new suggested costing system as activity-based costing (ABC). The production manager and the controller worked together and provided information in Table 2 . The table identifies the six activity cost pools and their arsociated manufacturing overhead costs. Together, they comprise toral budgeted manufacturing overhead costs for 2021 . Working rogether over the next fwo days, they compiled and organized the information in Table 3 regarding the activity cost drivers and activity Usage by each product: Working together over the next two days, they compled and organized the information in Table 3 regarding the actrvaty cost drivers and activity usage by each product: They decided 10 assign manufacturiag overhend to groducts based voce the actratisa that cause those orethead sosts Required (1): Using the information in table l. provide the mussme antormatoat by allocatifg the inanufacturing overmend to the tour products usug the sample job-order costing systern (5 - marks) Allocation of overhead costs under simplejob-order costing

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