50.1K

Verified Solution

Link Copied!

Please answer the required for question 1 and 2 no calculations needed. Thank you.

Topic: M04 Discussion: ABC Cesting This is a graded discussion: 10 points possible M04 Discussion: ABC Costing w applicable sources Note: Discussion entries and comments must be substantive and detailed. As usual, creativity is highly rewarded. QUESTION 1: Gynriostseheti Inc is a popular Cushion Manufacturer that produces and sells exotic Cushions made of feathers from an exotic bird that lives in an exotic planet, and eats exotic plant life serious. The company, having heard that you are taking ACCT& 203 at TCC, has hired you as an executive consultant. After thorough consultations and analysis, you have developed the following activity cost pools for the manufacturing overhead and other indirect costs TOTAL TOTAL COST ACTIVITY ACTIVITY COST POOL ACTIVITY MEASURE Number of Batches Customer Service Number of Customers s an g acthrity $84,000 During the year, the company completed four ondera for one of ts Details of these orders are provided below ustomers Awree Natcacnotus SUMMARY OF ORDERS TO AWREE NATCACNOTUS ORDER 1 ORDER 2 ORDER3ORDER Month of Order Units ordered 400 600 $20 Direct Materials cost per unit Direct labor hours per unit Se $20 0.25 hours 025hours025 hours 025 hours $2500 $2500 abor cost per hour $25 00 Selling Price per unit $50 550 $50 $50 REQUIRED 2525 1. Compute the customer maigin serived from the customer (Awree Natcacnotus) above 2. EXPLAIN four disadvantages (limitations) of Activity 10/1020

Answer & Explanation Solved by verified expert

See Answer