Trundie inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Trundie does large custom orders. Trundle budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembily in the forming department, indirect. manufacturing costs are accumutated in two cost pools setup and general oveihead, In the assembly department, all indirect manutacturng costs are accumulated in one general overthead cost pool. The basic trophies are formed in batches of 200 , but because of the more intricate detal of the deiure trophies they are formed in batches of 50 (Click the ron to vew budgeted information.) Linicusi Requirement 4. Explain brefly why plant-wide. department, and activity-based costing systems show different costs for the basic and deluxe trophies Which system would you fecommend and why? As Trunde uses more refined cost pools, the costs of basic trophies and the costs of deluxe trophies This is because trophies use a higher proportion of cost drtvers. Direct costs are for oeluxe trophies compared to basic trophies. This resuits in delixe trophies being and basic trophies being in the simple costing system Trundle Budgeted Intormation for the Year Ended November 30 \begin{tabular}{lcccc} Forming Department & Basic & Deluxe & Total \\ \hline Direct materials & $ & 25,000$ & 22,550$ & 47,550 \\ Direct manufacturing labour & 31,500 & 17,500 & 49,000 \end{tabular} Overhead costs Setup General overhead \begin{tabular}{lcccc} Assembly Department & Basic & Deluxe & Total \\ \hline Direct materials & $ & 5,000$ & 4,450$ & 9,450 \end{tabular} Direct manufacturing labour 15,50019,50035,000 Overhead costs General overhead 56,000