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wireless phone manufacturing division of a consumer simplicity, assume that its accountants have identified only the following 3 activities indirect production costs: Activity electronics company

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wireless phone manufacturing division of a consumer simplicity, assume that its accountants have identified only the following 3 activities indirect production costs: Activity electronics company uses activity-based costing. For for and related cost drivers Cost Driver Materials handling Engineering Power Direct-materials cost Engineering change notices Kilowatt hours Three types of cell phones are produced: Senior, Basic and Deluxe. Diret costs and cost driver activity for each product for a recent month are as follows Senior BasicDeluxe $ 25,000$ 60,000 $ 135,000 S 14,546$ 3,762 6,772 230,000 200,000 100,000 Direct-materials cost Direct-labor cost Kilowatt hours Engineering change notices Indirect Production costs for the month were as follows: Materials handling Engineering Power 21 20 69 $15,400 99,000 11,000 Total Indirect production cost $ 125,400 1. Compute the indirect production costs allocated to each product with the ABC system. 2. Suppose all indirect production costs had been allocated to products in proportion to their direct labor REQUIRED: costs (plant wide). Compute the indirect production costs allocated to each product If Sales were: Senior $85,000, Basic $110,000 and Deluxe $260,000 and unallocated costs were $50,000 Compare and contrast each product under both allocations (part 1 and 2 of the exercises), Present an income statement under each method 3

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