Akhbar LLC uses ABC costing for its products Deluxe' and 'Premium. The total estimated factory overhead...

  

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Akhbar LLC uses ABC costing for its products "Deluxe' and 'Premium". The total estimated factory overhead is divided into two activities. i) Purchase related overhead cost RO 10,000 ii) Quality inspection overhead cost RO 5000 The expected activities are 100 for purchase and 500 for quality inspection. Deluxe requires 60 purchase orders and 300 quality checks and Premium requires 40 purchase orders and 200 quality checks. Based on the information given, answer the following questions. Question 1 Not yet answered Marked out of 1,00 Flag question The amount of overheads allocated to product Deluxe and Premium for quality inspection will be: a. RO 3000 and RO 2000 b. RO 1000 and RO 2000 c. RO 2000 and RO 3000 d. RO 1000 and RO 3000 Question 2 Not yet answered Marked out of 1.00 Flag question The amount of overheads allocated to the product Deluxe and Premium for purchase cost will be: a. RO 3000 and RO 5000 b. RO 4000 and RO 6000 O c. RO 6000 and RO 4000 d. RO 5000 and RO 3000 OO Akhbar LLC uses ABC costing for its products "Deluxe' and 'Premium". The total estimated factory overhead is divided into two activities. i) Purchase related overhead cost RO 10,000 ii) Quality inspection overhead cost RO 5000 The expected activities are 100 for purchase and 500 for quality inspection. Deluxe requires 60 purchase orders and 300 quality checks and Premium requires 40 purchase orders and 200 quality checks. Based on the information given, answer the following questions. Question 1 Not yet answered Marked out of 1,00 Flag question The amount of overheads allocated to product Deluxe and Premium for quality inspection will be: a. RO 3000 and RO 2000 b. RO 1000 and RO 2000 c. RO 2000 and RO 3000 d. RO 1000 and RO 3000 Question 2 Not yet answered Marked out of 1.00 Flag question The amount of overheads allocated to the product Deluxe and Premium for purchase cost will be: a. RO 3000 and RO 5000 b. RO 4000 and RO 6000 O c. RO 6000 and RO 4000 d. RO 5000 and RO 3000 OO

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Overhead cost per activity Rate per activity of purchase related ove... View the full answer