Question: a) What is non-volume based MOH? What is the definition? b) Which activity cost are non-volume based MOH? Calculate and explain why it is non-volume

a) What is non-volume based MOH? What is the definition?

b) Which activity cost are non-volume based MOH? Calculate and explain why it is non-volume based MOH.

Three main activities and their activity drivers for the Mobile Phone Division are identified as follows: Activities No. of Resource Drivers Activity Drivers Activity Cost ($) Consumed 6000 Assembly hours Assembly setup No. of production batches 6 Employees 84,000 2 Employees Quality testing 2000 Testing hours No. of mobile phones produced 24,000 Distribution & customer support 10000 Kilometres travelled No. of distribution batches 4 Employees 46,000

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