Cocoa Pet Corporation Manufactures Two Models of Grooming Stations,a Standard

question 27

Essay

Cocoa Pet Corporation manufactures two models of grooming stations,a standard and a deluxe model.
The following activity and cost information has been compiled:

Required:
Assume a traditional (simple)costing system applies the $80,000 of overhead costs based on direct labour hours.
a.What is the total amount of overhead costs assigned to the standard model?
b.What is the total amount of overhead costs assigned to the deluxe model?
Assume an activity-based costing system is used and that the number of setups and the number of components are identified as the activity-cost drivers for overhead.
c.What is the total amount of indirect costs assigned to the standard model?
d.What is the total amount of indirect costs assigned to the deluxe model?
e.Explain the difference between the costs obtained from the traditional costing system and the ABC system.Which system provides a better estimate of costs? Why?

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Definitions:

Outright Deceive

To mislead or trick someone without any form of concealment or subtlety.

Relational Dissolution

is the process of ending or terminating a personal relationship between individuals.

Intrapsychic Phase

A stage in the deterioration of relationships focusing on personal reflection about the relationship and consideration of the disadvantages of one's partner, leading to internal conflict.

Emotions Bottled

The act of suppressing or holding back one's emotions instead of expressing them, often leading to increased stress or emotional outbreaks later.