3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department using​ activity-based costing, where setup costs are allocated based on number

3. Calculate the budgeted unit cost of basic and deluxe trophies if Acclaim allocates overhead costs in each department using​ activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department. 4. Explain briefly why​ plantwide, department, and​ activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and​ why? Transcribed Image Text: The controller has asked you to compare plantwide, department, and activity-based cost
allocation.
Acclaim Budgeted Information for the Year Ended November 30, 2020
Forming Department
Basic
Deluxe
Total
Direct materials
$
37,700 $
21,500 $
59,200
Direct manufacturing labor
31,200
15,300
46,500
Overhead costs: Set up
7,440
Overhead costs: General overhead
34,410
Assembly Department
Basic
Deluxe
Total
Direct materials
4,800 $
15,200 $
20,000
Direct manufacturing labor
15,300
14,700
30,000
Overhead costs: General overhead
36,000 Transcribed Image Text: Acclaim Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Acclaim does large custom orders. Acclaim budgets to produce 10,000 basic trophies and 5,000 deluxe
trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and
general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because
of the more intricate detail of the deluxe trophies, they are formed in batches of 50.
|(Click the icon to view budgeted information.)
Read the requirements.
include direct material and direct manufacturing labor cost in your unit cost calculation.)
Start by calculating the total direct costs for the basic and deluxe trophies departments.
Basic
Deluxe
Total
Direct materials
Forming
$
37,700 $
21,500 $
59,200
Assembly
4,800
15,200
20,000
Total direct materials
42,500
36,700
79,200
Direct manufacturing labor
Forming
31,200
15,300
46,500
15,300
14,700
30,000
Assembly
46,500
30,000
76,500
Total direct manufacturing labor
$
89,000 $
66,700 $
155,700
Total direct costs
%24

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