Lauren's Volleyball Company Produces Two Types of Volleyballs: Volleylite and Official

Essay

Lauren's Volleyball Company produces two types of volleyballs: Volleylite and Official Game.Both products pass through two producing departments.The Official Game production is much more labour-intensive than the Volleylite.The Volleylite is also more popular.The following data have been gathered for the two products:
Lauren's Volleyball has decided to used activity-based costing and has developed two types of activities,machine related (based on machine hours),and other overhead (based on packing orders).Machine-related costs equal $160,000.Other overhead costs equal $240,000.