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Njombe Corporation Manufactures A Variety Of Products.

Njombe Corporation articles a array of products. In the past, Njombe has been application a acceptable costing arrangement in which the agreed aerial amount was 150% of absolute action cost. Affairs prices had been set by adding absolute artefact amount by 200%. Sensing that this arrangement was distorting costs and affairs prices, Njombe has absitively to about-face to an activity-based costing arrangement for accomplishment aerial costs application three action amount pools. Affairs prices are still to be set at 200% of assemblage artefact amount beneath the new system. Information on these amount pools for abutting year are as follows: Action Amount PoolActivity MeasureEstimated ActivityEstimated Aerial CostMachine Setups. . . . . . . . . . . Number of setups400$150,000Quality Control. . . . . . . . . . . . Number of inspections1,500$180,000Other Overhead. . . . . . . . . . . Apparatus hours30,000$480,000Information (on a per assemblage basis) accompanying to three accepted articles at Njombe are as follows: Model #19Model #36Direct actual cost. . . . . . . . . . . . . . . . . . . . . . . $400$540Direct action cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . $810$600Number of setups. . . . . . . . . . . . . . . . . . . . . . . . . 23Number of inspections. . . . . . . . . . . . . . . . . . 13Number of apparatus hours. . . . . . . . . . . . 48Required: What would be the affairs amount of one assemblage of anniversary Model beneath the acceptable system?What would be the affairs amount of one assemblage of anniversary Model beneath the activity-based costing system? Explain the change in price.
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