Mercon window

Subject:AccountingPrice: Bought3

Share With

Mercon window.atments (shoces binds and wrto both Reponal and local customers. The following information rates to bed data for the current year Fiona Local nevenit 5400,000 3580,000 Direct material 0.000 50.000 bancource 100.000 300.000 et ved cost currently overhead is allocated to the products on the basis of the direct labour cost. Fatima, the controller does not believe that produced by the current system and considerin implementing an 8c system. She asks her accountant to conduct som investitions and the results are as follows Activity Estimated overhead Cost drivers 90,000 Hours of Nur setup pirea labour con bon 0000 The two products had the following expected use of cost drivers: Local Regional 700 500 Hours of travel Number of setups Direct labour cost 300 200 $100,000 $300,000 Required a. Prepare income statements for each of the two product lines using the traditional costing system (4 Marks) [insert your answers to question 2. here) b. Prepare income statements for each of the two product lines using the Activity Based Costing system (G Marics) insert your answers to question 2b, here]