M/s. Gharib LLC produces five products, ACE, BEE, CEZ, DIV and EVA, all from the same...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
M/s. Gharib LLC produces five products, ACE, BEE, CEZ, DIV and EVA, all from the same material. Until now, it has used traditional absorption costing to allocate overheads to its products. The company is now considering an activity-based costing in the hope that it will improve profitability. Information for the three products for the last year is as follows Particu lars Production and Sales Volumes (Units) Selling Price Per Unit (RO) Raw Material Usage (Kg) Per Unit Direct Labor Hours Per Unit Machine Hours Per Unit No of Production Runs Per Annum No of Purchase Orders Per Annum No of Deliveries to Retailers Per Annum ACE BEE CEZ DIV Particulars RO Machine set up costs 66,666 Machine running costs 77,777 Procurement costs 55,555 Delivery costs 44,444 20,000 8.5 25 0.15 0.5 32 48 96 18,000 25,000 44,000 11.5 12.5 13.5 3.5 3.5 0.15 0.20 0.7 0.9 16 84 124 24 56 60 4.5 0.25 0.9 18 80 80 EVA Required with appropriate formulas: Calculate the full cost per unit for products ACE, BEE, CEZ, DIV and EVA under traditional absorption, using direct labor hours as the basis for apportionment. Calculate the full cost per unit of each product using activity-based costing. Give your comments. 30,000 14.5 4.5 0.25 0.10 The price for raw material remained constant throughout the year at RO 3.750 per Kg. Similarly, the direct labor costs for the who workforce was RO 23.250 per hour. The .annual overhead costs were as follows 20 90 100 M/s. Gharib LLC produces five products, ACE, BEE, CEZ, DIV and EVA, all from the same material. Until now, it has used traditional absorption costing to allocate overheads to its products. The company is now considering an activity-based costing in the hope that it will improve profitability. Information for the three products for the last year is as follows Particu lars Production and Sales Volumes (Units) Selling Price Per Unit (RO) Raw Material Usage (Kg) Per Unit Direct Labor Hours Per Unit Machine Hours Per Unit No of Production Runs Per Annum No of Purchase Orders Per Annum No of Deliveries to Retailers Per Annum ACE BEE CEZ DIV Particulars RO Machine set up costs 66,666 Machine running costs 77,777 Procurement costs 55,555 Delivery costs 44,444 20,000 8.5 25 0.15 0.5 32 48 96 18,000 25,000 44,000 11.5 12.5 13.5 3.5 3.5 0.15 0.20 0.7 0.9 16 84 124 24 56 60 4.5 0.25 0.9 18 80 80 EVA Required with appropriate formulas: Calculate the full cost per unit for products ACE, BEE, CEZ, DIV and EVA under traditional absorption, using direct labor hours as the basis for apportionment. Calculate the full cost per unit of each product using activity-based costing. Give your comments. 30,000 14.5 4.5 0.25 0.10 The price for raw material remained constant throughout the year at RO 3.750 per Kg. Similarly, the direct labor costs for the who workforce was RO 23.250 per hour. The .annual overhead costs were as follows 20 90 100
Expert Answer:
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
Students also viewed these finance questions
-
The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $20,000 and investments of $70,000. In addition, it holds a small building bought on...
-
The City of Bernard starts the year of 2017 with the following unrestricted amounts in its general fund: cash of $26,500 and investments of $85,250. In addition, it holds a small building bought on...
-
The City of Bernard starts the year of 2010 with the following unrestricted amounts in its General Fund: cash of $20,000 and investments of $70,000. In addition, it holds a building bought on January...
-
In early 2015, the employment-population ratio was increasing while the labor force participation rate remained largely unchanged. Shouldn't both of these data series move in the same direction?...
-
A thin rod of length L has its two ends connected to two walls which are maintained at temperatures T1 and T2, respectively. The rod loses heat to the environment at T by convection. Derive an...
-
Find the transfer function H(Ï) = VO /Vi of the circuits shown in Fig. 14.71. (a) (b) lo RL 16
-
Football and Cognitive Percentile Exercise 2.143 on page 102 introduces a study that examines several variables on collegiate football players, including the variable Years, which is number of years...
-
A major reason for the rarity of formal financial forecasts in annual reports is the possibility of lawsuits if the forecast is not met, particularly in the United States. On November 17, 1995, The...
-
Multiplication of signed operands, which generate a double-length product in the 2's-complement 100 11 MULTIPLICAND (-13) 0 10 1 1 MULTIPLIER (+11) number system. The general strategy is the...
-
Quigley Corporations trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below. Unrecorded transactions and adjustments: 1....
-
Can I please have help with part b. This question has multiple parts. Work all the parts to get the most points. The Romans used calcium oxide, CaO, to produce a strong mortar to build stone...
-
A SWOT analysis can be considered an abbreviated version of the internal audit and external assessment. Discuss whether the SWOT approach could be an acceptable way of gathering the background...
-
Identify badges or certifications from the MBA program that you feel will be most useful for your career growth and explain how you will apply them. 1.) Microsoft PowerBI- Us e Advanced Calculations...
-
Choose an Industry 1. Explain the Sentiment Analysis for Product Reviews 2. perform sentiment analysis on a dataset of product reviews and generate insights to help a company understand customer...
-
Review the five generic competitive strategies and share the strategy you believe to be the most effective at enhancing a company's competitive advantages. Explain why. Does the strategy depend upon...
-
'Future Search' is a method for a community or organization to create a shared vision for its future. 'Future Search' generates all stakeholders' commitment and energy for action. Involved...
-
World's leading provider of financial services is OliveandBees Inc. There are offices for the corporation in 50 different nations. The business also operates numerous distributed data warehouses all...
-
What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85? Select one: O a. $325 O b. $5,500 O c. $2,750 O d. $1,175
-
Quantacc Ltd. began operations on January 1, 2015, and uses IFRS to prepare its consolidated financial statements. Although not required to do so, to facilitate comparisons with companies in the...
-
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: The partners decide to liquidate the...
-
What is the purpose of a drawing account in a partnerships financial records?
-
The bush baby, a small African mammal, is a remarkable jumper. Although only about 8 inches long, it can jump, from a standing start, straight up to a height of over 7 feet! Use the particle model to...
-
Your friend Travis claims to have set the new world speed record for riding a unicycle. His top speed, he says, was 55 m/s. Do you believe him? Explain.
-
Mark and Sofia walk together down a long, straight road. They walk without stopping for 4 miles. At this point Sofia says their displacement during the trip must have been 4 miles; Mark says their...
Study smarter with the SolutionInn App