p Lake Corporation has received an order for handheld computers from Union Limited. The cost structure and

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Lake Corporation has received an order for handheld computers from Union Limited. The cost structure and other pertinent information is given below: 400 units are to be produced Direct materials Purchased part Activity Unit level Parts production Assembly Packaging & shipping Batch level Work cell setup Product level Product design Product simulation testing hours $60,000 $80,000 Activity cost rate $50.00 per machine hour Cost driver level 200 machine hours $20.00 per direct labour hour 100 direct labour hours $12.50 per unit $100 per setup 400 units 16 setups $60.00 per engineering hours 80 engineering hours $80.00 per testing hour 30 Facility level Building occupancy Required: (i) (ii) (iii) 200% of assembly labour cost Calculate the total cost and the unit cost of the order. (9 marks) Explain the role of activity-based systems in the management cycle. (6 marks) Describe the process costing system, identify the reason for its use, and discuss its role in the management cycle. (5 marks) Lake Corporation has received an order for handheld computers from Union Limited. The cost structure and other pertinent information is given below: 400 units are to be produced Direct materials Purchased part Activity Unit level Parts production Assembly Packaging & shipping Batch level Work cell setup Product level Product design Product simulation testing hours $60,000 $80,000 Activity cost rate $50.00 per machine hour Cost driver level 200 machine hours $20.00 per direct labour hour 100 direct labour hours $12.50 per unit $100 per setup 400 units 16 setups $60.00 per engineering hours 80 engineering hours $80.00 per testing hour 30 Facility level Building occupancy Required: (i) (ii) (iii) 200% of assembly labour cost Calculate the total cost and the unit cost of the order. (9 marks) Explain the role of activity-based systems in the management cycle. (6 marks) Describe the process costing system, identify the reason for its use, and discuss its role in the management cycle. (5 marks)