Question

Narnia Technology uses ABC to allocate all of its manufacturing overhead. Narnia’s Cell
Phone Department, which assembles and tests digital processors, reports the following data regarding processor G27:
Direct materials cost.................................................................................. $14.00
Direct labour cost...................................................................................... $42.00
Manufacturing overhead allocated............................................................ ?
Manufacturing product cost...................................................................... $ ?
The activities required to build the processors are as follows:
1. Fill in the blanks in both the opening schedule and the list of activities.
2. Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the basis of direct labour?


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  • CreatedApril 30, 2015
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