Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E
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Question:
1. Calculate the predetermined rate for the plant using FBC based on machine hours for each job
2. Calculate total product cost using FBC based on Machine hours for each job
3. Calculate the unit cost for each Product
4. Is the overhead over-applied or under-applied?
Part 2
5. Calculate the predetermined rate for the plant using ABC based on machine hours for each job
6. Calculate product cost under ABC.
7. Calculate the unit cost for each Product [ABC]
8. Is the overhead over-applied or under-applied under ABC?
9. Compare the result of FBC and ABC.
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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