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.
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?