F Question 2 Quebec Plc operates an activity based costing system and forecasts the following activity...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
F Question 2 Quebec Plc operates an activity based costing system and forecasts the following activity for the next financial year detailed in Table1 - Cost Data: Cost Pool Table1 Cost Data www Cost Driver 140,500 Set-ups 196,000 Tests Cost £ Machine set-ups Quality testing Component 36,000 supply Packing & 135,000 delivery Component orders Customer orders Occurrence 500 1,400 600 1,800 2 ● Additional information General fixed overheads which cannot be linked to any specific activity are expected to be £450,000 and are to be absorbed using direct labour hours. Total labour hours for the next year are expected to be 150,000 hours. The company expects orders for one of their products, Sierra, next year to be 200 orders of 50 units per order and 140 orders of 20 units per order. The company produce the order requirements in production runs of 400 units. One order for components is placed prior to each production run. Three quality tests are made during each production run. Component costs - £1.90 per unit. The company produce the order requirements in production runs of 400 units. One order for components is placed prior to each production run. Three quality tests are made during each production run. Component costs - £1.90 per unit. Direct labour-0.5 hr per unit at £10.80 per hour. [Total 25 marks] 20 points 2(a) Calculate the total unit cost for Sierra using activity based costing (ABC). Present your answer appropriately and round answers to 2 decimal places. F Question 2 Quebec Plc operates an activity based costing system and forecasts the following activity for the next financial year detailed in Table1 - Cost Data: Cost Pool Table1 Cost Data www Cost Driver 140,500 Set-ups 196,000 Tests Cost £ Machine set-ups Quality testing Component 36,000 supply Packing & 135,000 delivery Component orders Customer orders Occurrence 500 1,400 600 1,800 2 ● Additional information General fixed overheads which cannot be linked to any specific activity are expected to be £450,000 and are to be absorbed using direct labour hours. Total labour hours for the next year are expected to be 150,000 hours. The company expects orders for one of their products, Sierra, next year to be 200 orders of 50 units per order and 140 orders of 20 units per order. The company produce the order requirements in production runs of 400 units. One order for components is placed prior to each production run. Three quality tests are made during each production run. Component costs - £1.90 per unit. The company produce the order requirements in production runs of 400 units. One order for components is placed prior to each production run. Three quality tests are made during each production run. Component costs - £1.90 per unit. Direct labour-0.5 hr per unit at £10.80 per hour. [Total 25 marks] 20 points 2(a) Calculate the total unit cost for Sierra using activity based costing (ABC). Present your answer appropriately and round answers to 2 decimal places.
Expert Answer:
Answer rating: 100% (QA)
OVERHEAD RATE USING ACTIVITY BASED COSTING PRINCIPLE ALLOCATED COSTS A B CAB Activity Activity Cos... View the full answer
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
Students also viewed these accounting questions
-
Rowen, Inc. had pre-tax accounting income of $270,0000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions: Received rent from Jane,...
-
Assuming a three-year time horizon and a tax rate of 20%, what is the NPV of outsourcing to CloudTech using a discount rate of 10%? Are there any potential soft benefits to outsourcing that are not...
-
The dividend payout ratio equals dividends paid divided by earnings. How would you expect this ratio to behave during a recession? What about during an economic boom?
-
Data Set 14 in Appendix B lists highway fuel consumption amounts (mi/gal) for cars categorized by size (small, midsize, large). If we use those highway fuel consumption amounts arranged into the...
-
Which of the following could be the correlation function of a stationary random process? (a) (b) (c) (d) (e) (f) Ra(r) = exp (-ld) Rb( r) exp (-r)21 ( 7) = (7) = exp (ld). RAT) sinc ( )
-
Particles A and B, each carrying a charge of \(2.0 \mathrm{nC}\), are at the base corners of an equilateral triangle \(2.0 \mathrm{~m}\) on a side. (a) What is the potential (relative to zero at...
-
What are the three steps that can be taken along a corporate eco-efficiency path? How are the five modules related to development of a measure of eco-efficiency?
-
A production process for filling orange juice containers labeled as 64 ounces is monitored for the actual amount of juice in the container. The process is designed such that the amount of juice in...
-
Following are transactions for Ridge Company. March 21 Accepted a $11, 100, 180-day, 10% note from Tamara Jackson in granting a time extension on her past-due account receivable. September 17 Jackson...
-
Which of the following statements is correct? a. Non-directional hedge fund strategies are riskier than directional ones O b. In pure plays, a hedge fund manager exploits mispricing in relative...
-
The following trial balance relates to Kos Jewellers Ltd for the month ending 30 September 2022: Unadjusted Trial Balance (Extract) of Kos Jeweller as at 30th September 2022 Dr ($) Cr ($) Accounts...
-
What is the difference between social responsibility and managerial ethics?
-
The BCG matrix provides managers with a systematic means of determining whether a growth, stability, or retrenchment strategy should be adopted. True or False
-
Each step in the strategic management process is independent so that changes in one step will not substantially affect other steps. True or False
-
Identify the generic business strategy configurations available to strategic managers according to Porters typology.
-
What is and should be the relationship between an organizations mission and its strategy?
-
Can someone explain to me these questions? How is the account balance of a savings account earning simple interest is determined. What is the difference between a savings account earning simple...
-
At the beginning of the year, Lam Ltd. had total assets of $800,000 and total liabilities of $500,000. Use this information to answer each of the following independent questions. (a) If Lam's total...
-
Describe how adding a risk-free security to modern portfolio theory allows investors to do better than the efficient frontier.
-
As owners, what rights and advantages do shareholders obtain?
-
The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 2.25 percent and on 20-year Treasury bonds is 4.50 percent. Assume that the maturity risk premium is zero. Calculate...
-
Simulation is helpful in learning vector time series. Define the matrices Use the command to generate 300 observations from the VAR(1) model \[ z_{t}=C z_{t-1}+a_{t} \] where \(a_{t}\) are iid...
-
Use the matrices of Problem 1 and the following command to generate 200 observations from the VMA(1) model, \(\boldsymbol{z}_{t}=\boldsymbol{a}_{t}-\boldsymbol{C} \boldsymbol{a}_{t-1}\), where...
-
The file \(q\)-fdebt.txt contains the U.S. quarterly federal debts held by (a) foreign and international investors, (b) federal reserve banks, and (c) the public. The data are from the Federal...
Study smarter with the SolutionInn App