WEBCAM RECORD Remaining Time 50 minutes 23 seconds. Question Completion Statu Question One ICLO Marks Al Mabasis and produces vehicle parts Al Murabes using a simple normal costing system allocates manufacturing overhead to the customers based on machine hours The consoles C Murabe Ltd, Mohamed Mesler who has recently completed studies bom UAE University is unhappy with the simple casting system and decides to implement an Activity Based e knows that there are three main activities that consume overhead resources design, production, and engineering He collects the following data Usage of cost drivers by customer Actvity Cost driver Toyota Valacia Manufacturing Peagent verhead 2007 Motors 110 ki Motors Design hous $40.000 265 106 16 50 240 Engineering 50.000 hours Machine hours 240.000 1.20 2.800 1.000 Production Tima $31.000 Repred 1 Compute the manufacturing overhead alocated to each cudomer using the current simple traditional system of cost alocation [2Marks) 2. Compute the amount of overhead alocated to each customer using ABC Marks 1 Explain FOUR ways that manegers use the data from 2 (above) to improve their performance 12 Marks For the toolbar, press ALT+F10 (PC) or ALT+F10 (Ma BIVS Pagraph Anal V 10pt AI 5 d X Blackboard XO WEBCAM RECORDING Remaining Time 47 minutes, 32 seconds. Question Completion Status: ALS ES S Question One [CLO 1] [7 Marks] Al Murabaa Ltd designs and produces vehicle parts Al Murabaa using a simple normal costing system allocates manufacturing overhead to its three customers based on machine hours The controller of Al Murabaa Ltd, Mohamed Mesfer who has recently completed studies from UAE University is unhappy with the simple costing system and decides to implement an Activity Based Costing System He knows that there are three main activities that consume overhead resources design, production, and engineering He collects the following data Usage of cost drivers by customer Activity Cost driver a Toyota Vehicle Manufacturing overhead 2007 Peugeot Motors Motors 110 Design Design hours 200 80 $40.000 30,000 70 30 240 Engineering Engineering hours Production Machine hours 240.000 120 2.800 1.000 Total $310.000 Required 1. Compute the manufacturing overhead allocated to each customer using the current simple (traditional) system of cost allocation Marka 2. Compute the amount of overhead allocated to each customer using ABC (3 Marks 3. Explain FOUR ways that managers use the data from 2. (above) to improve their performance [2 marks] For the toolbar, press ALT F10 (PC) or ALT+FN+F10 (Mac) www BIVS Paragraph V Arial V 10pt YEEYA IX f Blackboard X C 0 Remaining Time: 43 minutes. 59 seconds. Question Completion Status: 10 20 5 Question One [CLO 1] [7 Marks] Al Murabaa Lid designs and produces vehicle parts. Al Murabaa using a simple normal costing system allocates manufacturing overhead to its three customers based on machine hours. The controller of Al Murabas Ltd, Mohamed Mesfer who has recently completed studies from UAE University is unhappy with the simple costing system and decides to implement an Activity Based Costing System He knows that there are three main activities that consume overhead resources design, production, and engineering. He collects the following data Usage of cost drivers by customer Activity Cost driver Toyota Vehicle Manufacturing joverhead 2007 Peugeot Motors 110 Kia Motors 200 Design hours $40.000 50 Design Engineering 70 50 240 Engineering 30.000 hours 120 2800 1,000 Production Machine hours 240.000 Total $310,000 Required 1. Compute the manufacturing overhead allocated to each customer using the current simple (traditional) system of cost alocation (2Marks 2 Compute the amount of overhead allocated to sach customer using ABC Makal 3 Explain FOUR ways that managers use the data from 2 (above) to improve their performance Marks For the toolbar, press ALT+F10 (PC) or ALT+FN+F10(Mad BIUG Paragrach Aral WEBCAM RECORDING