Flanigan Manufacturing Uses an Activity-Based Cost System The Following Costs Are Reported

Essay

Flanigan Manufacturing uses an activity-based cost system. The company produces Product R and Product X. Information concerning the two products is as follows: $\begin{array}{lll}&\text { Product R } & \text { Froduct X } \\\text { Units produced } & 30,000 & 50,000 \\\text { Direct labour hours } & 24,000 & 26,000 \\\text { Engineering labour (hours) } & 4,000 & 6,000 \\\text { Setups } & 20 & 30 \\\text { Kilowatt hours } & 5,000 & 7,000\end{array}$ The following costs are reported: $\begin{array}{ll}\text { Power } & £ 24,000 \\\text { Engineering } & 140,000 \\\text { Setups } & 120,000\end{array}$