Answers
1) Overhead assigned under traditional costing
Basic model (137061/10300*5700) | 75849 |
Deluxe model | 61212 |
2) Overhead rate
Material handling (2666/62) | 43 per move |
Quality inspection (31395/360) | 87 per inspection |
Machine maintenance (103000/10300) | 10 per machine hour |
3) Overhead cost assigned to Basic model
Basic | |
Material handling | 430 |
Quality inspection (240*87) | 20880 |
Machine maintenance | 57000 |
Total overhead assigned | 78310 |
4) Overhead cost assigned to deluxe model
Deluxe | |
Material handling (52*43) | 2236 |
Quality inspection (120*87) | 10440 |
Machine maintenance | 46000 |
Total overhead assigned | 58676 |
5) ABC Cost system
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