The August Manufacturing Company in Rochester, Minnesota, assembles and tests electronic components used in handheld video phones. Consider the following data regarding component T24:

The activities required to build the component follow:

Requirements
1. Complete the missing items for the two tables.
2. Why might managers favor this ABC system instead of August€™s older system, which allocated all conversion costs on the basis of directlabor?

Transcribed Image Text:

Direct materials cost Direct labor cost Activity costs allocated |Manufacturing product cost 82.00 24 23.00