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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Direct labour
Output (units)
500
300
Machine
Direct materials
Cupcakes
Doughnuts
Curry puffs
50 hours
750 kg
100 kg
50 kg
150 hours
60 hours
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.
Transcribed Image Text: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 Direct labour Output (units) 500 300 Machine Direct materials Cupcakes Doughnuts Curry puffs 50 hours 750 kg 100 kg 50 kg 150 hours 60 hours 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.
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