3. A consultant has recommended that NF use a TDABC costing system based on three activities:...

  

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3. A consultant has recommended that NF use a TDABC costing system based on three activities: materials handling, production, and finishing. The factory accountant has produced the following summary that allocates the labour and machine hours used by Job XQ389 to each activity. If NP uses TDABC for costing what will be the total cost that would be recognized for each activity and total cost for Job XQ389? Materials Handling Production Finishing Labour Type 1 6.00 4.00 0.00 Labour Type 2 Machine Type 1 Machine Type 2 0.00 0.00 1.00 3.00 3.00 2.00 12.00 0.00 7.00 The annual cost and practical capacity of labour and machines are: Annual Cost Practical Capacity (hours) Annual Cost Practical Capacity (hours) Materials Labour Type 1 Hours Type 2 Hours Machine Type 1 Hours Type 2 Hours Type 1 $400,000 8,000 Type 1 Labour $3,000,000 20,000 1 $500.00 41 Machine 2 1 NF recently completed Job XQ389. This is the summary of the cost of materials, labour time, and machine time consumed by this job in each department: Type 2 $360,000 12,000 6 4 Type 2 13 $2,000,000 25,000 Department 2 $400.00 Total 0 10 3 $200.00 06 $760,000 20,000 Total $5,000,000 45,000 3. A consultant has recommended that NF use a TDABC costing system based on three activities: materials handling, production, and finishing. The factory accountant has produced the following summary that allocates the labour and machine hours used by Job XQ389 to each activity. If NP uses TDABC for costing what will be the total cost that would be recognized for each activity and total cost for Job XQ389? Materials Handling Production Finishing Labour Type 1 6.00 4.00 0.00 Labour Type 2 Machine Type 1 Machine Type 2 0.00 0.00 1.00 3.00 3.00 2.00 12.00 0.00 7.00 The annual cost and practical capacity of labour and machines are: Annual Cost Practical Capacity (hours) Annual Cost Practical Capacity (hours) Materials Labour Type 1 Hours Type 2 Hours Machine Type 1 Hours Type 2 Hours Type 1 $400,000 8,000 Type 1 Labour $3,000,000 20,000 1 $500.00 41 Machine 2 1 NF recently completed Job XQ389. This is the summary of the cost of materials, labour time, and machine time consumed by this job in each department: Type 2 $360,000 12,000 6 4 Type 2 13 $2,000,000 25,000 Department 2 $400.00 Total 0 10 3 $200.00 06 $760,000 20,000 Total $5,000,000 45,000

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