a. What should be the best basis for allocating plant administrative costs?

b. How to examine the association between Total Plant Administration Costs and each of the potential bases for allocation presented in Exhibit 4 of the case study (Zauner Ornaments).

c. What seem to be appropriate cost drivers for Total Plant Administration Costs?

d. Justify your choice of selecting allocation base for Total Plant Administrative Costs considering both the statistical and non-quantitative analysis and available data.

e. How do costs, and gross margins change using activity-based costing?

f. Compute activity for each activity base.

g. Compute of overhead rates (OH cost per unit of driver) for each cost pool. Be sure to show both the numerator and denominator of the rate calculation.

h. Calculate the allocation (base X rate) for each product

reference

.From Zauner Ornaments case study

 

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