Question: answer me quickly please Laila Led Laila Linked ha UK based company manufacture three main types of prod uchy - Small Medium and Large, The

answer me quickly please

answer me quickly please Laila Led Laila Linkedanswer me quickly please Laila Led Laila Linkedanswer me quickly please Laila Led Laila Linked
Laila Led Laila Linked ha UK based company manufacture three main types of prod uchy - Small Medium and Large, The company currently uses the traditional coming wyitem where owetheadd are allocated to the three products on the bushcol labour hours Management Is however not happy with this approach i provides limited explanation for the overheads Manepan. therefore have no knowledge of the canes of the owsheachi and therelore find A difficult to manage thewe oweheads. With effect from the soce finandal your, the company plans to introduce activ ty backed costing an a replacement for the traditional costing patent However, the two systems will be operated side-by tolduntil hoop when the traditional sprice will be faced out As a management accounting malstant you have been inked by the Chief FI- nancial Officer to prepare a report on the benefits of activity-based coating to the company. You manage to collect information on each product as fol- the a Small Medium Units produced and 80.030 sold Total direct materi 1150 009 1120,000 LJ0,080 al cost Total direct Labour coul 14K OOO 15 000 Unit selling price The total overhead for the period 3 1350 ooo. Upon further analysis of the overhead you discovered that this is made up of the following E Ind rect labour 216,000 Computer systems 10,000 Machinery 14,000 Maintenance 14,000 Energy Total 160,000 Further investigation of the above overheads yielded the following cost driv- a. The indirect labour is needed to support production. The cost driver for indirect labour is labour hours. b. The computer system is needed to support production runs. The cost driv- er is number of production runs.The machinery cost relates to machine depreciation. The cost driver b machine hours d. The maintenance cost relates to the machines. The cost driver is machine hours. The energy cost Is incurred on running the machines. The cost driver is machine hours The cost driver levels in each department are shown below. Cost driver Small Medium Large Labour hours 60 000 10.000 10 000 Machine hours 45 090 Number of production runs 90,000 40 900 10 000Briefly explain why cous might be different under the tra ditional and ABC system Read the Information about Laila L (below) and complete the following tasks Preping an Income starts of each product and the totals for the company using both the badaional costing system and activity based conting Prepare a report to management commenting on the results produced by the two costing ontem The report should in- clude a discussion of the berwehty ar Imitation of each

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