. Al-Madina Company produces a number of goods. In the past, the company used the costing systern for the production sta

[answerhappygod]

Al Madina Company Produces A Number Of Goods In The Past The Company Used The Costing Systern For The Production Sta 1 (83.51 KiB) Viewed 74 times

. Al-Madina Company produces a number of goods. In the past, the company used the costing systern for the production stages, depending on the number of operating hours of machines, the company switched to the activity-based costing (ABC) system, and in light of this transformation, the company identified the following activities for cost drivers: Activity cost driver Download rate machines Number of machine operating hours 12 riyals/hour censorship The number of times the product is checked 50 riyals/check If you know: The total estimated indirect costs are (720,000) riyals annually, and the estimated number of hours of operation of machines is (50,000) hours annually. The company started during the current year with operating order No. (151). The number of hours of operation of the machines required by the order reached (20) hours and requires (4) inspection times. Required: 1. What is the amount incurred by the matter (151) of the indirect industrial costs in light of the company's use of the traditional production stages costing system? 2. What is the amount incurred by the matter (151) of the indirect industrial costs in light of the company's use of the activity-based costing system (ABC)? .