Activity-Based Costing in the Fashion Apparel Industry Fleet Street Inc., a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers...

Activity-Based Costing in the Fashion Apparel Industry Fleet Street Inc., a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (45%), skirts (35%), dresses (15%), and other (5%). Fleet Street has been using a volumebased rate to assign overhead to each product; the rate it uses is £2.25 per unit produced. The results for the trousers line, using the volume-based approach, are as follows:

   Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities. The total conversion cost (labor and overhead) for the eight activities, after allocation to the trousers line, is as follows:

Required Determine the profit margin for the trousers line using ABC and comment on the difference in comparison to the volume-based calculations