材料全屏Abkaber assembles three ty

材料全屏 Abkaber assembles three types of motorcycle at the same factory: the 50cc Sunshine; the 250cc Roadster and the 1000cc Fireball. It sells the motorcycles throughout the world. In response to market pressures Abkaber has invested heavily in new manufacturing technology in recent years and, as a result, has significantly reduced the size of its workforce. Historically, the company has allocated all overhead costs using total direct labour hours, but is now considering introducing Activity Based Costing (ABC). Abkaber's accountant has produced the following analysis. The three cost drivers that generate overheads are: Deliveries to retailers – the number of deliveries of motorcycles to retail showrooms Set-ups – the number of times the assembly line process is re-set to accommodate a production run of a different type of motorcycle Purchase orders – the number of purchase orders. The annual cost driver volumes relating to each activity and for each type of motorcycle are as follows: The annual overhead costs relating to these activities are as follows: $ Deliveries to retailers 2,400,000 Set-up costs 6,000,000 Purchase orders 3,600,000 All direct labour is paid at $5 per hour. The company holds no inventories. 38 【论述题】 Calculate the total costs of producing the budgeted amount of Sunshine motorcycles based on the existing method of attributing overheads.