Question: PLEASE answer the whole Required clearly and explained so I can read & understand Question 1 (20 Marks) Sunway Northern Company Bhd produces two products:
Question 1 (20 Marks) Sunway Northern Company Bhd produces two products: bathing soap and sanitizer During September 2013, 16,000 containers of bathing soap and 12,000 containers of sanitizer were produced. Total overhead costs of RM 68,000 were incurred. The following information related to overhead costs were available Activit Materials handlin Machine setups Cost Driver Number of requisitions Number of setups Number of in Total Cost in RMM 14,000 24,000 30,000 lity inspections tions The cost driver volume for each product was as follows Cost Driver No. of requisitions 50 No. of setu No. of inspections 180 Total 80 50 500 Bathing Soap Sanitizer 30 26 24 320 Required: a) When should Activity-Based Costing be used (5 marks) b) Compute the overhead rate for each activity c) Assign the manufacturing overhead cost for September 2013 to the two products (6 marks) using ABC and determine the overhead cost per unit. (9 marks)
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