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Turnbull Company produces two products, Beta and Delta Overhead consists of the following 50 posts with beloftes the 52.720.000 in maching costs with machine hours
Turnbull Company produces two products, Beta and Delta Overhead consists of the following 50 posts with beloftes the 52.720.000 in maching costs with machine hours as the driver and 50.000 packing costs with a orders as the driver. Data for the current year fotos Beta Delta Number of 10 0 Machine hours 1.000 4000 Packing orders Number of produced 600 400 What is the total overhead allocated to Beta under activity based costing! $464.000 5473,000 5773 51,392.000 All of the following are benefits of an activity-based costing (ABC) system except: ABC methods can be used to identify value-added and non-value-added activities and costs. ABC methods support a more strategic view of cost management and product mix decisions. ABC methods provide more accurate measures of costs of products, customers, sales agents, business units, market regions, etc. ABC cost consumption relationships are based on a longer time horizon than traditional systems. Which of these are a benefit of using activity-based costing (ABC)? ABC reduces distortions caused by traditional methods that may make one product seem more or less profitable than it really is. ABC uses traditional rules for managers, so acceptance is usually automatic. ABC reports conform to GAAP and save the expense of needing to create more than one format. ABC simplifies the amount of information supplied to managers so that only relevant information is supplied
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