this company makes 2 type of parts 1. ex300 2. tx500 absortion costing income is show below – precious manfacturing inc – income statement- Sale= 1,700.000; cost of good-sold =1.200.000/ gross margin- 5000.00 selling exp=550.000 net opertion =5000 a loss. this company produce and sold 60,000 unit of ex 300 at a price of 20 dollar per unit and 12.500 unit of tx 500at a price of 40 dollar per unit this company cost system manaufacturing over head product using overhead rate and direct labor as te base,/ ex300- direct material=366.325; direct labor= 120;000/ tx 500 direct material 162,550; direct labor = 42; 500 total directmaterial = 528;875 direct labor= 162500; total manu overhead = 508.625 total= 1.200.000. this company has create a active base cost system to evulate the profit of its product. a team survey show that the company that 50,000 and 100;000 of the company advertising couldbe divert to ex 300 and tx 500 by didtribute the company manufacture overhead to itsactivity/ Activity cost pool- manufacture overhead Activity ex 300 tx 500 total — 1 machines hrs – 198.250 – ex300= 90,000 tx 500= 62.500 total 152.500 setup hr=150.000 ex 300= 75 tx 500 300 tota 375 product numbers of production 100;000 ex 300= 1 tx 500= 1 total= 2 operation cost= 60;375 total overhead cost= 508,625 question i need to computer the product margin for ex 300 and tx 500 under the company traditon cost system/ question i need to compute the product margin for ex 300 and tx 500 under the activity base cost sytems/ question i need to prepare a comprasion of the traditional and active base cost assigment i need to explain why the tradtion and active base cost are different
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