(a) Introduction: The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products. To compute: The overhead assigned to the fabric case using the traditional costing system.

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Answer 1

Question

Chapter 4, Problem 12E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products.

To compute:

The overhead assigned to the fabric case using the traditional costing system.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the fabric case using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the fabric case over or under costed by the traditional cost system compared to ABC.

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Answer 2

Question

Chapter 4, Problem 12E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products.

To compute:

The overhead assigned to the fabric case using the traditional costing system.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the fabric case using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the fabric case over or under costed by the traditional cost system compared to ABC.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 12E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products.

To compute:

The overhead assigned to the fabric case using the traditional costing system.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the fabric case using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the fabric case over or under costed by the traditional cost system compared to ABC.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 12E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products.

To compute:

The overhead assigned to the fabric case using the traditional costing system.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the fabric case using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the fabric case over or under costed by the traditional cost system compared to ABC.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 12E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products.

To compute:

The overhead assigned to the fabric case using the traditional costing system.

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the fabric case using ABC.

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the fabric case over or under costed by the traditional cost system compared to ABC.

Answer 6

Chapter 4, Problem 12E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products.

To compute:

The overhead assigned to the fabric case using the traditional costing system.

Answer 7

Chapter 4, Problem 12E

To determine

(a)

Introduction:

The traditional costing system allocates the overheads based on, either the amount of direct labor hours consumed, or machine hour used.The overheads were allocated to products based on resources used in manufacturing the products.

To compute:

The overhead assigned to the fabric case using the traditional costing system.

Answer 8

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the fabric case using ABC.

Answer 9

To determine

(b)

Introduction:

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product. In this method the costs are assigned to each activity that goes into production.

To compute:

The overhead assigned to the fabric case using ABC.

Answer 10

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the fabric case over or under costed by the traditional cost system compared to ABC.

Answer 11

To determine

(c)

Introduction:

The traditional costing system allocates the overheads on the basis of either the amount of direct labor hours consumed, or machine hour used

ABC system was developed to deal with the loopholes of traditional costing system. It helps in finding the total cost of activities that are necessary to make a product.

To compare:

Whether the fabric case over or under costed by the traditional cost system compared to ABC.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4 - What is the difference between a volume-based cost...Ch. 4 - Explain the statement that traditional costing...Ch. 4 - Prob. 3Q Ch. 4 - How does activity-based costing differ from...Ch. 4 - What types of business might use activity-based...Ch. 4 - Prob. 6Q Ch. 4 - Prob. 7Q Ch. 4 - Prob. 8Q Ch. 4 - Why must costs be classified into different...Ch. 4 - Prob. 10Q

Solution Summary: The author explains how the traditional costing system allocates overheads based on direct labor hours consumed, or machine hour used. ABC system helps in finding the total cost of activities that are necessary to make a product.

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