The budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Budgeted Overheads (RM) Material procurement 580,000 Material handling 250,000 Set-up 415,000 Maintenance 970,000 Quality control 176,000 Machinery 720,000 Cost Driver Budgeted Volume No. of orders 1,100 No of movements 680 No. of set ups 520 Maintenance hours 8,400 No. of inspection 900 No, of machine hours 24,000 The company has produced a batch of 2,600 components of A.X-1S, its material cost was RM 130,000 and labour cost RM 245,000. The usage activities of the said batch are as follows. Material orders is 26. Maintenance hours is 690. Material movements is 18. Inspection is 28. Set ups is 25. Machine hours 1,800 Calculate the cost of batch of components using Activity Based Costing.
The budgeted overheads and cost driver volumes of XYZ are as follows.
Cost Pool |
Budgeted Overheads (RM) |
|
|
Material procurement |
580,000 |
Material handling |
250,000 |
Set-up |
415,000 |
Maintenance |
970,000 |
Quality control |
176,000 |
Machinery |
720,000 |
Cost Driver |
Budgeted Volume |
No. of orders |
1,100 |
No of movements |
680 |
No. of set ups |
520 |
Maintenance hours |
8,400 |
No. of inspection |
900 |
No, of machine hours |
24,000 |
The company has produced a batch of 2,600 components of A.X-1S, its material cost was RM 130,000 and labour cost RM 245,000.
The usage activities of the said batch are as follows.
Material orders is 26. Maintenance hours is 690. Material movements is 18. Inspection is 28.
Set ups is 25. Machine hours 1,800
Calculate the cost of batch of components using Activity Based Costing.
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