Kula Company Ltd manufactures two products, Flora and Fauna. Estimates for the company's products for next year are provided below: Flora Fauna Estimated production volume Direct material cost Direct labour per unit 3 000 4 000 $60 / unit 3 hours @ $25 / hour $90/ unit 4 hours @ $25 / hour Kula's estimated overhead of $1 500 000 can be identified with three major activities: order processing ($280 000), machine processing ($1 020 000) and product inspection ($200 000). These activities are driven by the number of orders processed, machine hours, and inspection hours, respectively. Estimated activity levels for the next year are as follows: Flora Fauna Total Orders processed 300 46 000 18 000 500 800 Machine hours 39 000 85 000 Inspection hours 7 000 25 000 Required: Assuming that Kula Company Ltd uses activity-based costing to apply overhead to production, calculate the unit manufacturing costs of the Flora and Fauna products if the estimated manufacturing volume is attained.

Kula Company Ltd manufactures two products, Flora and Fauna. Estimates for the company's products for next year are provided below: Flora Fauna Estimated production volume Direct material cost Direct labour per unit 3 000 4 000 $60 / unit 3 hours @ $25 / hour $90/ unit 4 hours @ $25 / hour Kula's estimated overhead of $1 500 000 can be identified with three major activities: order processing ($280 000), machine processing ($1 020 000) and product inspection ($200 000). These activities are driven by the number of orders processed, machine hours, and inspection hours, respectively. Estimated activity levels for the next year are as follows: Flora Fauna Total Orders processed 300 46 000 18 000 500 800 Machine hours 39 000 85 000 Inspection hours 7 000 25 000 Required: Assuming that Kula Company Ltd uses activity-based costing to apply overhead to production, calculate the unit manufacturing costs of the Flora and Fauna products if the estimated manufacturing volume is attained.

Name: Kula Company Ltd manufactures two products, Flora and Fauna. Estimate
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Kula Company Ltd manufactures two products, Flora and Fauna. Estimates for the company's productsfor next year are provided below:FloraFaunaEstimated production3 0004 000volume$60 / unit3 hours @ $25/ hourDirect material cost$90/ unitDirect labour p

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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