The budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Material procurement...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Material procurement Material handling Set-up Maintenance Quality control Machinery Cost Driver No. of orders No of movements No. of set ups Maintenance hours No. of inspection No, of machine hours Budgeted Overheads (RM) Budgeted Volume 2 580,000 250,000 415,000 970,000 176,000 720,000 The company has produced a batch of 2,600 components of A.X-1S, its material cost was RM 130,000 and labour cost RM 245,000. ac mae 1,100 680 520 8,400 900 24,000 The usage activities of the said batch are as follows. Material orders is 26. Maintenance hours is 690. Material movements is 18. Inspection is 28. Set ups is 25. Machine hours 1,800 Required (a) Calculate the cost driver rates that are used for tracing appropriate amount of overheads to said batch [12 marks] (b) Calculate the cost of batch of components using Activity Based Costing. [28 marks] (c) Explain how activity-based costing systems can provide more accurate product costs than traditional cost systems. ram -221 The budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Material procurement Material handling Set-up Maintenance Quality control Machinery Cost Driver No. of orders No of movements No. of set ups Maintenance hours No. of inspection No, of machine hours Budgeted Overheads (RM) Budgeted Volume 2 580,000 250,000 415,000 970,000 176,000 720,000 The company has produced a batch of 2,600 components of A.X-1S, its material cost was RM 130,000 and labour cost RM 245,000. ac mae 1,100 680 520 8,400 900 24,000 The usage activities of the said batch are as follows. Material orders is 26. Maintenance hours is 690. Material movements is 18. Inspection is 28. Set ups is 25. Machine hours 1,800 Required (a) Calculate the cost driver rates that are used for tracing appropriate amount of overheads to said batch [12 marks] (b) Calculate the cost of batch of components using Activity Based Costing. [28 marks] (c) Explain how activity-based costing systems can provide more accurate product costs than traditional cost systems. ram -221
Expert Answer:
Answer rating: 100% (QA)
Cost Pool Budgeted Overheads a Cost Driver Material Procurement Material Handling Setup 58... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
Students also viewed these accounting questions
-
You have a business that just ended its fourth year. The fourth-year income statement and ending balance sheet are as follows: Revenue $1,000,000 COGS 500,000 Gross profit 500,000 Other variable...
-
BALANCE 100 POUNDS OF A RATION FOR SWINE TO CONTAIN 18.1 PERCENT PROTEIN. MAKE THE RATION CONTAIN 15 PERCENT Oats AND USE CORN AND SOYBEAN MEAL TO SUPPLY THE NEEDED AMOUNT OF ADDITIONAL PROTEIN....
-
Accounts payable typically arise because a-cash is received from a customer that will be paid back in the future. b-cash is received from customers prior to the rendering of services or delivery of...
-
Suppose the weight of pieces of passenger luggage for domestic airline flights follows a normal distribution with u = 28 pounds and o = 5.7 pounds. (a) Calculate the probability that a piece of...
-
Describe the four different types of competition in the private enterprise system. In which type of competition would each of the following businesses be likely to engage? a. large drug store chain...
-
Given the circuit in Fig. 2.78, use KVL to find the branch voltages V1 to V4. 5 V
-
In the Sumet Company, two employees were terminated for falsifying their time records. The two employees had altered overtime hours on their time cards after their supervisors had approved the hours...
-
Given the data in Problem 7, determine the first activities to be crashed by the following priority rules: (a) Shortest task first. (b) Most resources first (use normal cost as the basis). (c)...
-
The cause of action:Breach of Contract. The client is getting sued for breaching an apartment lease. Hector's representation includes appearances at all circuit court proceedings, consultations and...
-
The bookkeeper of Triad Co. gathered the following data from individual employee earnings records and daily time cards. Your task is to complete a payroll register on August 8. Assume the following:...
-
Sam Speed works as an accountant for Global Solutions Accounting. His area of specialisation is liquidation. One day the managing partner hands Sam a file with documentation that evidences a number...
-
You are the HR manager for the ABC Store and pursuing an employer-of-choice designation. The dataset in the Employee Survey spreadsheet contains the past four years of your employee engagement...
-
Design a full adder circuit to add 3 bits. A B- Cin- P Cout Camry G Ful Adder 5) Carry C Full Adder A 0 0 0 0 Carry C 1 1 1 1 Full Adder B 0 Carry 0 1 1 0 0 1 Design 4-bit adder which add two 4-bit...
-
Assume a system where the patients arrive at the registration desk of a clinic. The system is M/M/1 with the following input: Patient Arrival Time (in minutes) Service Time (in minutes) 1 0 2 2 3 5 2...
-
DATA Price name state location 82.051.001.001.00 83.131.001.001.00 83.431.001.001.00 83.611.001.001.00 83.201.001.001.00 81.211.001.002.00 80.291.001.002.00 80.881.001.002.00 81.711.001.002.00...
-
In the frame analysis we want to draw the moment diagram and find the Mix, the maximum moment. The frame has symmetrical lateral pressure of 425kN. Write down all the steps thank you. If data is...
-
Rental details from operation of two separate rental properties: Property 1 Property 2 Property 3 Gross rental revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $62,000 $52,000...
-
Could the owner of a business prepare a statement of financial position on 9 December or 23 June or today?
-
The company recently replaced the heating/cooling system for its building. The old system cost $160,000, and was 80% depreciated. The new system cost $210,000, which was paid in cash. The new system...
-
Under what general conditions is the installment sales method of accounting preferred to the full accrual method?
-
Annual income for the Stoker Co. for the period 20072011 appears below. However, a review of the records for the company reveals inventory misstatements as listed. Calculate corrected net income for...
-
A healthy diet is becoming increasingly important for consumers, especially women aged 2535. As a result, they are taking active steps to ensure they are eating healthy but are also looking for other...
-
Lael was just hired by Best East Motels into their manager training program and was excited about the potential benefits after her graduation from Florida State University. Working part-time and...
-
Sophie just completed a sales training course with one of the firms most productive sales representatives, Emma. At the end of the first week, Sophie and Emma sat in a motel room filling out their...
Study smarter with the SolutionInn App