Question: CoursHeroTranscribedText: uestion 1: 20 marks Part 1 Traditional Method Sharp Glass is considering using Activity Based Costing Based on the Given Information: 1. Using the

CoursHeroTranscribedText: uestion 1: 20 marks Part 1 Traditional Method 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) 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 1,250 750 Direct Labour Hours (per unit) 3.00 5.00 Equipment Setups # Setups 40 50 $ 45,000 Scrap Disposal Tons 400 200 $ 75,000 Quality Control # Inspections 200 400 $ 135,000 Part 2 ABC Method $ 255,000 Part 3 Comment
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
