a) Calculate the consumption ratios for each activity.b) Choose group activity based on the consumption ratios.c) Calculate a rate for each pooled group of activities.d) Calculate unit product costs using the pool rates. Question 3Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is asfollows:Product-Costing DataDeluxeActivity Usage MeasuresRegular50,0005,000Units produced per yearPrime costTotal55,000RM408,000RM39,000RM369,000Direct labor hours5,00045,00050,000Machines hours10,00090,000100,000Production runs10515Number of moves12060180Activity Cost Data (OverheadActivities)ActivityCost (RM)Setups60,000Materials handling30,000Power50,000Testing40,000Total180,000Activity driverProduction runsNumber of movesMachines hoursDirect labor hours0

ABC costing is a system where cost and overheads are allocated based on the activities assigned to…

Question 3 Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is as follows: Product-Costing Data Regular 50,000 RM369,000 45,000 90,000 Activity Usage Measures Units produced per year Deluxe Total 5,000 RM39,000 5,000 10,000 55,000 RM408,000 50,000 100,000 15 Prime cost Direct labor hours Machines hours Production runs 10 Number of moves 120 60 180 Activity Cost Data (Overhead Activities) Activity driver Production runs Number of moves Activity Cost (RM) Setups Materials handling 60,000 30,000 50,000 40,000 Power Machines hours Testing Total Direct labor hours 180,000

Question 3 Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is as follows: Product-Costing Data Regular 50,000 RM369,000 45,000 90,000 Activity Usage Measures Units produced per year Deluxe Total 5,000 RM39,000 5,000 10,000 55,000 RM408,000 50,000 100,000 15 Prime cost Direct labor hours Machines hours Production runs 10 Number of moves 120 60 180 Activity Cost Data (Overhead Activities) Activity driver Production runs Number of moves Activity Cost (RM) Setups Materials handling 60,000 30,000 50,000 40,000 Power Machines hours Testing Total Direct labor hours 180,000

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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