y! difference b x 1 Actual Cost X Key Differer X Course Her X y! Using norm x 1 Predetermi + V B3160-001 X X wind my.mun.ca x Activities - E X Horngren's X - -> C O File | C:/Users/JASMINE%20KAUR%20KOHLI/Downloads/B3160-001%20(F2022)%20A1%20(students)%20(1).pdf E B3160-001 (F2022) A1 (students) (1).pdf 3 / 4 80% + Case #3 Eva Inc. manufactures two products, A3 and B5. The company uses normal costing with a single plantwide manufacturing overhead rate based on direct labour hours. Recently, the company's management accountant has suggested that the firm adopt an activity-based costing system and collected the following data for last year: A3 B5 Units produced and sold 50,000 100,000 Direct labour hours used 200,000 600,000 Direct labour cost $2,000,000 $9,000,000 Number of times handled 80,000 40,000 Number of parts 24,000 16,000 Number of design changes 4,000 2.000 Number of product setups 16,000 12,000 The accountant determined that the company performs four activities and determined the following costs for each one Activity Activity Cost Handling $6,000,000 Number of parts $4,800,000 2 Design changes $6,600,000 Setups $5,600,000 Total overhead $23,000,000 Direct materials cost per unit are $240 for the A3 and $280 for the B5. Required (A) Compute the manufacturing overhead rate using the existing costing system (based on direct labour hours) (B) Compute the total manufacturing overhead allocated to each product line using the existing costing system. What is the total manufacturing cost per unit for each product line? 3 (C) Compute the manufacturing overhead rates using activity-based costing. D) Compute the total manufacturing overhead allocated to each product line using activity- based costing. What is the total manufacturing cost per unit for each product line? (E) Which method produces more accurate estimates of job costs? Why? Discuss. (F) How could the company use this information to better manage its business? 19:23 Type here to search 199+ ( DELL P 13.C ~ 9 0 6 7 4) ENG 29-09-2022 45