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Cameron Company has two major segments (East & West) with the following information: Number of...

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Accounting

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Cameron Company has two major segments (East & West) with the following information: Number of Salespersons Number of Customers Number of miles driven East 30 600 180,000 West 45 900 120,000 Total 75 1,500 300,000 The business also has overhead costs as follows: Activity Costs per activity Cost driver AED 72,000 Number of miles driven Travel Entertainment Administrative 287,925 Number of customers 288,975 Number of Salesperson TotalAED 648,900 A. Determine the cost of each of the company's segments under the traditional costing system in which it applies total manufacturing overhead of AED 648,900 using a predetermined overhead rate based on number of customers. If the company considering using a variation of activity-based costing to determine its segments costs for external reports. Determine the cost of each of the company's two segments under activity-based costing system. B

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