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This is ABC COSTing I need it in 30 mins Please type just answer instantly based on the data so I can copy & paste
This is ABC COSTing
I need it in 30 mins Please type just answer instantly based on the data so I can copy & paste directly .
question #26 Pelles, Inc. produces two different products, Product X and Product Y and is currently using the Traditional Costing System to allocate Manufacturing Overhead. MOH is allocated to products based on Direct labor Hours (DLH). The DLH for the year used by the two products are indicated below: Product X Product Y PLH 100,000 DLH 150,000 DLH Pelles is considering switching to an ABC system by splitting its manufacturing overhead cost across two activities: Design and Production. Under the ABC system, the usage of the activity drivers are as follows: Activity Activity Driver Product X Product Y Design Design Hours (DH) 4000 DH 1000 DH Production DLH h00,000 DLH 150,000 DLH Question 1. Which product appears to be the higher volume product? Explain why. (Max of 1 sentence) Question 2. If Pelles moves to an ABC Costing system, explain how you expect the Product X cost per unit to change (increase, decrease) as compared to using the Traditional Costing system explained above. Use activity proportions to justify your answer. This is not a numerical question, but instead, it is a concept question. Using the concept of activity proportions, explain why there is more/less MOH applied to Product Y using the ABC vs. the Traditional System. (Maximum of 2 sentences). Question 3. Which method would you want to use and why? (max of 2 sentences) Essay Toolbar navigation B I S E 13 " !. This question will be sent to your instructor for gradingStep by Step Solution
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