Question: Cna you help with the below? Sharp Glass is considering using Activity Based Costing Based on the Given Information: 1. Using the traditional method of
Cna you help with the below?
| Sharp Glass is considering using Activity Based Costing | |||||||
| Based on the Given Information: | |||||||
| 1. Using the traditional method of costing (using Direct Labour Hours) calculate the total overhead allocated to each of glass and mirror departments (Hint: Calculate total direct labour hours first) Complete both traditional method and ABC method | |||||||
| 2. Using the ABC method of costing calculate the total overhead allocated to each of glass and mirror departments | |||||||
| 3. Comment on the difference between traditional and ABC methods | |||||||
| Glass | Mirror | Overhead Costs | |||||
| Units produced | 750 | 500 | |||||
| Direct Labour Hours | (per unit) | 2.50 | 7.50 | ||||
| Equipment Setups | # Setups | 30 | 50 | $ 70,000 | |||
| Scrap Disposal | Tons | 300 | 500 | $ 160,000 | |||
| Quality Control | # Inspections | 200 | 500 | $ 175,000 | |||
| $ 405,000 | |||||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
