Luzent Company produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labor Dirhams. For 2018, Luzent compiled the following data for the two pr


Luzent Company produces two likenesss of minute doors: Deluxe and Standard. The assignment reason for foundation consumes has been plain drudge Dirhams. For 2018, Luzent compiled the forthcoming basis for the two effects: Deluxe Measure Sales aces 50,000 400,000 Sales value per ace Dh650.00 Dh475.00 Prime consumes per ace Dh180.00 Dh130.00 Plain materials consume per ace Dh95.00 Dh75.00 Plain drudge consumes per ace Dh75.00 Dh55.00 Manufacturing foundation consumes per ace Dh 80.00 Dh120.00 Last year, Luzent Manufacturing purchased an high-priced robotics arrangement to avow for past honorary door effects in the deluxe effect method. The CFO suggested that an ABC segregation could be precious to aid evaluate a effect mix and preferment diplomacy for the direct sales campaign. She obtained the forthcoming ABC counsel for 2018: Activity Consume Driver Consume Whole Deluxe Measure Setups of setups Dh 500,000 500 400 100 Machine-related of muniment hours Dh44,000,000 600,000 300,000 300,000 Packing of shipments Dh 5,000,000 250,000 50,000 200,000 Required: a. Using the general arrangement, what is the estimated 1. whole consume of manufacturing one ace for each likeness of door? 2. acquisition per ace for each likeness of door? b. Using the general arrangement, estimated manufacturing over consumes per ace are hither for the deluxe door (Dh80 per ace) than the measure door (Dh120 per ace). What is a slight description for this? c. “ABC arrangements may product in misallocation of inplain consumes.” Do you coincide? Give reasons for your exculpation. d. What considerations scarcity to be examined when determining a sales mix diplomacy? e. While implementing an ABC arrangement for the primary span, achieving a indicative substitute overnight is trying and this may de motivate employees. How can managers conquer this substance?

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