Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Fixed manufacturing overheads Activity area Set-up costs Machine costs Quality inspections . • R 480 000 1 600 500 800 000 Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. Machine cost: Temba's production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. • • Quality inspections: Every 10th Match ball and every 200th Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total set-up cost allocated to Training balls is: Select one: a. None of the options b. R320 000,00 C. R444 444,44 Od. R342 857,14 e. R400 000,00

Themba Ltd manufactures two types of soccer balls, namely Training and Match balls. Fixed manufacturing overheads (FMO) are allocated to products using activity-based costing (ABC). Below is the Activity area and the FMO applicable to this area. Fixed manufacturing overheads Activity area Set-up costs Machine costs Quality inspections . • R 480 000 1 600 500 800 000 Set-up costs: The manufacturing machines need to be set up before each production run. The balls are manufactured in production runs and each independent Training production run contains 250 balls and each independent Match production run contains 100 balls. Machine cost: Temba's production process is highly automated, and it takes 15 machine minutes and 24 machine minutes to manufacture one Training and one Match ball respectively. • • Quality inspections: Every 10th Match ball and every 200th Training ball is quality inspected. Temba manufactured 500 000 Training balls and 100 000 Match balls. The total set-up cost allocated to Training balls is: Select one: a. None of the options b. R320 000,00 C. R444 444,44 Od. R342 857,14 e. R400 000,00

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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