Question: hello can i have the answer for this please Part Three (ABC) George Jefferson, the accounting manager at MI, has just returned from a conference

hello can i have the answer for this please

Part Three (ABC) George Jefferson, the accounting manager at MI, has just returned from a conference on activity-based costing and thinks MI should consider implementing an ABC system. George has identified five primary activities taking place in the production facilities at MI, has traced Year 2 overhead costs to each activity, and has identified a cost driver for each activity as follows: Estimated Year 2 Overhead Costs Using ABC Activity Monthly Overhead Cost Cost Driver Materials delivery and handling $4,620 Number of shipments Molding and cleaning $3,150 Number of molds Painting and finishing $5,670 Direct labor hours Packaging $1,260 Number of figurines Quality inspections $2,100 Number of inspections Based on information about production needs and the differences for each type of product (replicas are not uniform in size, dolls need more inspection, etc.) George has estimated the following activity for each cost driver: Dolls Replicas Total Number of shipments 52 108 160 Direct labor hours 87,500 7,000 94,500 Number of figurines 352,800 25,200 378,000 Number of molds 2,500 500 3,000 Number of inspections 80,000 4,000 84,000 Required: A. Using the preceding activities and cost drivers, calculate a predetermined overhead rate for each activity. B. Using ABC, how much estimated overhead would be allocated to a doll? to a replica? C. Compare the estimated overhead allocation using ABC to the estimated overhead allocation using direct labor hours. What do you think is the cause of the differences? D. What are some of the advantages and disadvantages of using ABC in this case? E. Would you suggest that MI adopt an ABC system? Why or why not? F. Does the information provided by the ABC system give you some insight into areas of possible cost reduction? What areas have the greatest potential for cost reduction, and what are the potential impacts on the business from these cost reductions?

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