Question

BlendIn, Inc. makes protective covers for small kitchen appliances. The firm currently produces six models, each of which is redesigned once per year. All six models are produced on the same equipment, but this equipment needs extensive recalibration and reengineering each time the firm starts a new production run. Based on this information, the type of overhead costing system best suited for BlendIn is a(n):

Answer 1

Activity-based costing system using multiple basis for allocation

Step-by-step explanation:

Activity - based costing -

It is a costing method which allocates the indirect and overhead costs for the goods and services , is known as Activity - based costing .

This method helps to determine the relationship between the overhead activities and cost , and the products manufactured , via allocating the indirect costs to the product less randomly than the normal costing method .

hence , from the question information ,

The type of overhead costing system most appropriate for the Blendln is Activity-based costing system using multiple basis for allocation .