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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
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 plaat's controller, the controllet suggested to elimanate 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 owver abd CEO announced the decision to eliminate the " D "product from the Plant's product line because this product in more contly than the other 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 overhend cost pool. The Ptant's simple job costing systera allocates the manefaching overhead costs to these products ming budgeted direct labor cost as an allocation base. The Plant's 2021 budgeted manufacturing costs included the following amounts: - Total budzeted direct material sosts of $720,000 - Total budgeted direct manufacturing labor costs of \$672,000 - Total budgced manufacturing overhead costs of $1,680,000 Table I presenas the flana" 2021 budgeted mamiacturiag coats, by product and is total
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