(SOLVED) Refer to Case 8 46 Assume that U B Bright decided to


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Refer to Case 8.46. Assume that U.B Bright decided to implement an activity-based costing system that included all costs except direct material. She identities the following costs, by cost category, for the past year and selects the following resource drivers:
Next, Bright divides the company into the following activity centres:
Product Development ………………………………………… Baking
Sales and Dispatch ………………………. Packing and Warehousing
Mixing Pastries and Batters ………………………… Administration
Filling Pies and Danishes …………………… Corporate Management
The resource driver usage by each activity centre, for the various categories, follow.
Required:
1. Assign the costs to the activity centres using the resource driver consumption patterns shown above.
2. Why did U.B. Bright use cost categories in her analysis?
3. Explain how she would have identified the cost categories, and give two examples of the costs likely to be included in each category.
4. U.B. Bright used the number of employees as the resource driver for wages. Can you suggest a more accurate basis for assigning wage costs to activity centres?
5. Can you suggest a more accurate basis than machine hours for assigning depreciation costs to activity centres?

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