How to do A to C

(Note: Round your answers to 2 decimal places)

(a)

Determine the unit product cost of each product under the traditional costing method.

(7 marks)

(b)

Compute the factory overhead cost per unit of REGULAR ONLY, using the

activity-based costing approach.

(8 marks)

(c)

Determine the unit product cost of REGULAR ONLY using the activity-based

costing approach.

(3 marks)

Question 1 rat markal al phadetermined Dverhead vofl =erfimated overhead cost = shous the cempany's pooducts follow? sepected direct lcibour howr =1,600,00025,000DLH =64 Fer DLH iei derert - idemified with throe majeo activitied an follows: effiriencies. (b) atour Regaired: (7) marla) acrititybasal coatieg aproods. Q nexs? postire aproskt. 43 matio Q nats Question 3 (20 marks) Definite ACE (DACE) manufactures two products, Regular and Supreme. The company's traditional costing system applies overhead on the basis of direct labour hours. Information about the company's products follows: Anticipated overheads and direct labour time for the coming month of December are $1,600,000 and 25,000 hours respectively. DACE's overhead of $1,600,000 can be identified with three major activities as follows: Senior management is very concerned about declining profitability despite a healthy increase in sales volume. The decrease in profit is especially puraling because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed-machinery that was expected to produce significant operating efficiencies