please help me figure out this problem using absorbtion costing method? (apsorbtion using

machine hours)

calculate the budgeted overhead costs using activity-based costing principles, b) calculate the budgeted overhead costs using absorption costing (absorb overhead using machine hours), and c) how can the company reduce the ABC for Product XX: Customer AAA BBB Component Type A999 1999 Contract Value (5) $27,000 $100,000 Contract Quantity 1,000 unit 2,000 unit Material cost/unit 515 $20 Moulding time/batch 5 hours 7.5 hours 100 units 50 units Batch size Batch size 100 units 50 units Activity Cost Driver Cost Driver Volume/Yr Cost Pool Purchasing Purchase orders 1,500 $75,000 Setting Batches produced 2,800 $112,000 Materials handling Materials movements 8,000 $96,000 Inspection Batches produced 2,800 $70,000 Machining costs Machine hours 50,000 $150,000 Ver 721 E-mail Oct 05, 2019 6:48:00 AM Pacific Standard Time Chat (Offline) Bookmarks - Purchase orders Output 15,000 units 100 units Production batch size Materials movements per batch 0.1 Machine hours per unit