Question: Can you answer questions C & D in ABC vs. Traditional Costing i need answer for b, c and d step by step 3M Corporation
Can you answer questions C & D in ABC vs. Traditional Costing
3M Corporation is applying manefacturing overhead to is prodect on the basis of direct habor cose. The company has two products, Standard and Deluxe. The company recently itart producing the Deluae prodoci and was expecting a higher increase. Lakty tar's manqfacturing overhead was 5830,000 , baied an peoduction of 320,000 units of Standard and 120,000 aaits of Delyse. Selling prices were $3.60 per Standard and $5.80 per Deluxe. Direct thaterials and direct labor conts were as followy Mark Jarrod, the new company's sontroller, is considering the use of Activity-Based Conting (ABC) for the company. He identified three majir activities felaided to overhead as follows: REOUIRFD: (a) Compute the con per unit for Stondand and Deluxe. assuming the use of direct labor conts is an application rate. (b) Compute the cost per unis for Siandard and Deluxe aspuming the use of ABC. (c) Compute the profft margin pert ugit for each product. (d) How might the resibis explain why the proftu did not increave as management expected
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
