Question: please solve with this exact values ABC Corporation makes two types of replacement fittings for heavy construction equipment - Screws and Bolts. Data regarding the
ABC Corporation makes two types of replacement fittings for heavy construction equipment - Screws and Bolts. Data regarding the two products are as follows: Additional information about the company follows: a) Screws require $8 in direct materials per unit and Bolts require $6 per unit. b) The direct labour wage rate is $20 per hour c) Screws are more complex to manufacture than Bolts, and they require special equipment. d) The ABC system has the following Cost Pools: You are requested to 1. Compute the activity rate for each activity cost pool 2. Determine the unit cost of each product according to the ABC system, including direct material and direct labour. 3. What are the advantages and disadvantages of ABC method? 4. When will you recommend ABC - large organisation with many activities or small organisation to few activities and why
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