Question: please solve it in 30 mins I will thumb you up please fast I have 30 mins just Hamid Ltd produces two products - shoes

 please solve it in 30 mins I will thumb you up

please solve it in 30 mins I will thumb you up please fast I have 30 mins just

Hamid Ltd produces two products - shoes and belts. At present the company uses absorption costing, based on a labour hours rate, to establish the production overhead costs. The budgeted information for Period 4 is shown below. The overhead and cost driver information for Period 4 is shown below. Additional information Product inspection - one in every ten products is inspected. Machine set-up - the company uses a single machine to produce both products. For period 4, 300 setups will be made that will be shared equally between both the products. Machine maintenance - this is based on a predetermined number of machine hours. Product handling and packaging - each product is packed in separate crates containing 50 units. Required: (a) (i)Complete the cost driver table for period 4. You may use the format below. IY407 Management Accounting Exam Page 8 of 10 (8 marks) (ii)Calculate overhead cost per unit for each of the products produced by Hamid Ltd. (9 marks) (b) Explain the usefulness and limitation of ABC costing compared with absorption costing. (3 marks) (Total 20 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!