MJ Bhd produces two types of bicycles, which are bicycle A and bicycle B. The following...
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MJ Bhd produces two types of bicycles, which are bicycle A and bicycle B. The following is the information on both products for the year 2021. Units produced (units) Raw material cost ($) Direct labour cost ($) Unit selling price ($) Labour hours (hours) Bicycle A 10,000 1,000,000 500,000 280 50,000 Assembly (Assembly hours) Delivery (Delivery hours) Bicycle B 20,000 Factory overhead Cost ($) 550,000 Assembly Delivery 300,000 For each product, the activities are as follows: Bicycle A 2,000 6,000 1,500,000 700,000 The total factory overheads for producing both of the products are RM2,000,000 and the basis for overhead allocation is labour hours. 300 50,000 The activities that are related to the production of both products are assembly and delivery. The information related to these activities is as follows: Activity 25,000 assembling hours 15,000 delivery hours Bicycle B 3,000 4,000 Based on the information given, calculate the cost for both, bicycle A and bicycle B by using the job order costing and activity-based costing systems. Which product is more profitable? MJ Bhd produces two types of bicycles, which are bicycle A and bicycle B. The following is the information on both products for the year 2021. Units produced (units) Raw material cost ($) Direct labour cost ($) Unit selling price ($) Labour hours (hours) Bicycle A 10,000 1,000,000 500,000 280 50,000 Assembly (Assembly hours) Delivery (Delivery hours) Bicycle B 20,000 Factory overhead Cost ($) 550,000 Assembly Delivery 300,000 For each product, the activities are as follows: Bicycle A 2,000 6,000 1,500,000 700,000 The total factory overheads for producing both of the products are RM2,000,000 and the basis for overhead allocation is labour hours. 300 50,000 The activities that are related to the production of both products are assembly and delivery. The information related to these activities is as follows: Activity 25,000 assembling hours 15,000 delivery hours Bicycle B 3,000 4,000 Based on the information given, calculate the cost for both, bicycle A and bicycle B by using the job order costing and activity-based costing systems. Which product is more profitable?
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The cost of bicycle A under the job order costing system is as follows Direct materials cost 1000000 ... View the full answer
Related Book For
OM4 operations management
ISBN: 978-1133372424
4th edition
Authors: David Alan Collier, James R. Evans
Posted Date:
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