Pricing: meteor model retails for 840€, Moonlight Model retails 1485€ The company incurs overheads which total €1200.000. Α total of 15000€ direct labour hours are worked. Department cost center Buliding rent 50.000 utilities 50.000 machining 600.000 Procurement 150.000 Sales 150.000 General Management 200.000 Total 1.200.000 Cost center Machining Finishing Administration Floor Area 1.500 sq.m 1.500 sq.m 2.000 sq.m Machine Hours 25.000 hours 5.000 hours Direct Labour Hours 5000 hours 10.000 hours Each unit of Meteor was machined for 10 hours in Machining and 1 hour in Finishing. Each unit of the Moonlight was machined for 2 hours in Machining and 1 hour in Finishing. Calculate the full cost for each bicycle model (e.g. Meteor and Moonlight) based on: a. Plant-wide (single or blanket) overhead rates b. Department cost centre rates (where overhead absorption rates are based on an overhead analysis sheet) c. Activity-based costing (ABC)
Pricing: meteor model retails for 840€, Moonlight Model retails 1485€ The company incurs overheads which total €1200.000. Α total of 15000€ direct labour hours are worked. Department cost center Buliding rent 50.000 utilities 50.000 machining 600.000 Procurement 150.000 Sales 150.000 General Management 200.000 Total 1.200.000 Cost center Machining Finishing Administration Floor Area 1.500 sq.m 1.500 sq.m 2.000 sq.m Machine Hours 25.000 hours 5.000 hours Direct Labour Hours 5000 hours 10.000 hours Each unit of Meteor was machined for 10 hours in Machining and 1 hour in Finishing. Each unit of the Moonlight was machined for 2 hours in Machining and 1 hour in Finishing. Calculate the full cost for each bicycle model (e.g. Meteor and Moonlight) based on: a. Plant-wide (single or blanket) overhead rates b. Department cost centre rates (where overhead absorption rates are based on an overhead analysis sheet) c. Activity-based costing (ABC)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Pricing: meteor model retails for 840€, Moonlight Model retails 1485€
The company incurs
Department cost center
|
Buliding rent |
50.000 |
| utilities | 50.000 |
| machining | 600.000 |
| Procurement | 150.000 |
| Sales | 150.000 |
| General Management | 200.000 |
| Total | 1.200.000 |
| Cost center | Machining | Finishing | Administration |
| Floor Area | 1.500 sq.m | 1.500 sq.m | 2.000 sq.m |
| Machine Hours | 25.000 hours | 5.000 hours | |
| Direct Labour Hours | 5000 hours | 10.000 hours |
Each unit of Meteor was machined for 10 hours in Machining and 1 hour in Finishing. Each unit of the Moonlight was machined for 2 hours in Machining and 1 hour in Finishing.
Calculate the full cost for each bicycle model (e.g. Meteor and Moonlight) based on:
a. Plant-wide (single or blanket) overhead rates
b. Department cost centre rates (where overhead absorption rates are based on an overhead analysis sheet)
c. Activity-based costing (ABC)
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