In: Accounting
Fahmy Furniture, LLC is producing different range of furniture such as sofa set, cupboard, dining table set and showcases.
Assume you are senior accountant of Fahmy Furniture, LLC and comparing between both the methods of costing absorption and ABC system on the basis of following information:
Production detail: -
In the month of June Company expected to produce 50 units of sofa set; 75 units of cupboard; 125 units of dining table set and 25 units of showcases.
Overheads, Activity and Cost Driver Details: -
Note: - Labor hours given for assembly of materials will be the basis of apportionment and other calculation.
Prime Cost Details: -
Requirements: -