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9:24 8 ☑ Answered:... Now! 응 bartleby.com SEARCH ASK Question مه 57% (b) Activity based costing method. 3. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period: Labour Product Volume Material Cost per unit Labour per unit Direct Time per unit Machine Cost per unit ₹ ? A 500 5 1/2 hour B 5,000 5 1/2 hour 1/4 hour 1/4 hour 3 3 C 600 D 7,000 16 7 2 hours 1 hour 12 1 1 hours 12 hours 9 Total production overhead recovered by the cost accounting system is analysed under the following headings: Factory overhead applicable to machine-oriented activity 37,425; Set-up costs 4,355; Cost of ordering materials 1,920; Handling materials 7,580; Administration for spare parts 8,600. These overhead costs are absorbed by products on a machine hour rate of 4.60 per hour giving an overhead cost per product of A= 1-20; B=1-20; C=4-80; D=7-20 However, investigation into the production overhead activities for the period reveals the following totals: Number of Period Number of set-ups Number of material orders handled A 1 1 2 B 6 4 10 C 2 1 3 D 8 4 12 17 10 27 Your are required: Number of times Material was spare parts 2 5 1 4 12 to compute an overhead cost per product using activity based costing, tracing overheads to production units by means of cost drivers; and the differences disclosed between overheads traced by the Transcribed Image Text: (b) Activity based čóšting. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period : Material Direct Machine Labour Volume Cost per unit Labour per unit Time per unit Cost per unit Product 500 1/2 hour 1/4 hour 5,000 1/2 hour 1/4 hour 3 C 600 16 2 hours 1 hour 12 D 7,000 1 hours 12 hours |||

9:24 8 ☑ Answered:... Now! 응 bartleby.com SEARCH ASK Question مه 57% (b) Activity based costing method. 3. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period: Labour Product Volume Material Cost per unit Labour per unit Direct Time per unit Machine Cost per unit ₹ ? A 500 5 1/2 hour B 5,000 5 1/2 hour 1/4 hour 1/4 hour 3 3 C 600 D 7,000 16 7 2 hours 1 hour 12 1 1 hours 12 hours 9 Total production overhead recovered by the cost accounting system is analysed under the following headings: Factory overhead applicable to machine-oriented activity 37,425; Set-up costs 4,355; Cost of ordering materials 1,920; Handling materials 7,580; Administration for spare parts 8,600. These overhead costs are absorbed by products on a machine hour rate of 4.60 per hour giving an overhead cost per product of A= 1-20; B=1-20; C=4-80; D=7-20 However, investigation into the production overhead activities for the period reveals the following totals: Number of Period Number of set-ups Number of material orders handled A 1 1 2 B 6 4 10 C 2 1 3 D 8 4 12 17 10 27 Your are required: Number of times Material was spare parts 2 5 1 4 12 to compute an overhead cost per product using activity based costing, tracing overheads to production units by means of cost drivers; and the differences disclosed between overheads traced by the Transcribed Image Text: (b) Activity based čóšting. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period : Material Direct Machine Labour Volume Cost per unit Labour per unit Time per unit Cost per unit Product 500 1/2 hour 1/4 hour 5,000 1/2 hour 1/4 hour 3 C 600 16 2 hours 1 hour 12 D 7,000 1 hours 12 hours |||

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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9:24 8 ☑ Answered:... Now! 응 bartleby.com SEARCH ASK Question مه 57% (b) Activity based costing method. 3. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period: Labour Product Volume Material Cost per unit Labour per unit Direct Time per unit Machine Cost per unit ₹ ? A 500 5 1/2 hour B 5,000 5 1/2 hour 1/4 hour 1/4 hour 3 3 C 600 D 7,000 16 7 2 hours 1 hour 12 1 1 hours 12 hours 9 Total production overhead recovered by the cost accounting system is analysed under the following headings: Factory overhead applicable to machine-oriented activity 37,425; Set-up costs 4,355; Cost of ordering materials 1,920; Handling materials 7,580; Administration for spare parts 8,600. These overhead costs are absorbed by products on a machine hour rate of 4.60 per hour giving an overhead cost per product of A= 1-20; B=1-20; C=4-80; D=7-20 However, investigation into the production overhead activities for the period reveals the following totals: Number of Period Number of set-ups Number of material orders handled A 1 1 2 B 6 4 10 C 2 1 3 D 8 4 12 17 10 27 Your are required: Number of times Material was spare parts 2 5 1 4 12 to compute an overhead cost per product using activity based costing, tracing overheads to production units by means of cost drivers; and the differences disclosed between overheads traced by the Transcribed Image Text: (b) Activity based čóšting. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period : Material Direct Machine Labour Volume Cost per unit Labour per unit Time per unit Cost per unit Product 500 1/2 hour 1/4 hour 5,000 1/2 hour 1/4 hour 3 C 600 16 2 hours 1 hour 12 D 7,000 1 hours 12 hours |||
Transcribed Image Text:9:24 8 ☑ Answered:... Now! 응 bartleby.com SEARCH ASK Question مه 57% (b) Activity based costing method. 3. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period: Labour Product Volume Material Cost per unit Labour per unit Direct Time per unit Machine Cost per unit ₹ ? A 500 5 1/2 hour B 5,000 5 1/2 hour 1/4 hour 1/4 hour 3 3 C 600 D 7,000 16 7 2 hours 1 hour 12 1 1 hours 12 hours 9 Total production overhead recovered by the cost accounting system is analysed under the following headings: Factory overhead applicable to machine-oriented activity 37,425; Set-up costs 4,355; Cost of ordering materials 1,920; Handling materials 7,580; Administration for spare parts 8,600. These overhead costs are absorbed by products on a machine hour rate of 4.60 per hour giving an overhead cost per product of A= 1-20; B=1-20; C=4-80; D=7-20 However, investigation into the production overhead activities for the period reveals the following totals: Number of Period Number of set-ups Number of material orders handled A 1 1 2 B 6 4 10 C 2 1 3 D 8 4 12 17 10 27 Your are required: Number of times Material was spare parts 2 5 1 4 12 to compute an overhead cost per product using activity based costing, tracing overheads to production units by means of cost drivers; and the differences disclosed between overheads traced by the Transcribed Image Text: (b) Activity based čóšting. XYZ manufactures four products, namely A, B, C and D using the same plant and process. Following information relates to a production period : Material Direct Machine Labour Volume Cost per unit Labour per unit Time per unit Cost per unit Product 500 1/2 hour 1/4 hour 5,000 1/2 hour 1/4 hour 3 C 600 16 2 hours 1 hour 12 D 7,000 1 hours 12 hours |||
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