Posted: July 9th, 2016

. What are the implications of the activity-based costing system with respect to?

Using WGCC’s current product-costing system:
1. A. Determine the company’s predetermined overhead rate using direct-labor cost as the single cost driver.”
B. Determine the full product costs and selling prices of one pound of Kona coffee and one pound of Malaysian coffee.

2. Develop a new product cost, using an activity-based costing approach, for one pound of Kona coffee and one pound of Malaysian coffee

3. What are the implications of the activity-based costing system with respect to
A. The use of direct labor as a basis for applying overhead to products?
B. The use of the existing product-costing system as the basis for pricing?