Question: Any help is appreciated!! Overhead Overhead Standard . ctivity ost $50,000 Number of setups 10 setups Machining $800,000 Machine hours 40,000 hours 40,000 hours Engineering
Any help is appreciated!!

Overhead Overhead Standard . ctivity ost $50,000 Number of setups 10 setups Machining $800,000 Machine hours 40,000 hours 40,000 hours Engineering $700,000 Engineering hours 15,000 hours 20,000 hours Packing $420,000 Packing orders 20,000 orders 5,000 orders Required: (a) Using the activity based costing data calculate the overhead cost per unit for the two mower product lines. (5 marks) (b) Calculate the contribution margin per unit generated by the two mowers under the conventional costing and activity based costing approaches. (2 marks) (c) Based on the answers in part b), write a brief note to the general manager explaining the differences in the contribution margins under the two costing approaches and evaluating the suggestion of the marking manager to switch emphasis to the Deluxe model. (6 marks)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
