Alien is the cost supervisor at the production department fora bakery chain store called Lofa Bakery in Alor Setar. Thisbakery produces three types of products, namely cupcakes,doughnuts and curry puffs. The following information ratesto the bakery operations for the year ending 31 December2021.The total production costs are given below:Cost poolsMachiningSet-up costsPackagingInspectionRM8,0005,5004,2002,800Direct labourOutput (units)500300MachineDirect materialsCupcakesDoughnutsCurry puffs50 hours750 kg100 kg50 kg150 hours60 hours60 hours20080 hours40 hoursCost poolsMachiningSet-up costsPackagingInspectionCost driverMachine hoursDirect materials (kg)Number of units producedNumber of units producedRequired:Using the ABC approach, calculate the activity rate for eachpools.

Activity based costing means where the product is valued on the basis of actual direct material ,…

Alien is the cost supervisor at the production department for a bakery chain store called Lofa Bakery in Alor Setar. This bakery produces three types of products, namely cupcakes, doughnuts and curry puffs. The following information rates to the bakery operations for the year ending 31 December 2021. The total production costs are given below: Cost pools Machining Set-up costs Packaging Inspection RM 8,000 5,500 4,200 2,800 Output (units) Machine Direct materials Direct labour Cupcakes Doughnuts Curry puffs 750 kg 100 kg 50 kg 50 hours 150 hours 60 hours 500 300 60 hours 200 80 hours 40 hours Cost pools Machining Set-up costs Packaging Inspection Cost driver Machine hours Direct materials (kg) Number of units produced Number of units produced Required: Using the ABC approach, calculate the activity rate for each pools.

Alien is the cost supervisor at the production department for a bakery chain store called Lofa Bakery in Alor Setar. This bakery produces three types of products, namely cupcakes, doughnuts and curry puffs. The following information rates to the bakery operations for the year ending 31 December 2021. The total production costs are given below: Cost pools Machining Set-up costs Packaging Inspection RM 8,000 5,500 4,200 2,800 Output (units) Machine Direct materials Direct labour Cupcakes Doughnuts Curry puffs 750 kg 100 kg 50 kg 50 hours 150 hours 60 hours 500 300 60 hours 200 80 hours 40 hours Cost pools Machining Set-up costs Packaging Inspection Cost driver Machine hours Direct materials (kg) Number of units produced Number of units produced Required: Using the ABC approach, calculate the activity rate for each pools.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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