Sagar Manufacturing Ltd. manufactures 2 products A, B. Also there are 2 activities (Quality Checks and...
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Sagar Manufacturing Ltd. manufactures 2 products A, B. Also there are 2 activities (Quality Checks and Power) on which it calculates activity cost rates based on Cost Driver capacity. The cost drivers for Quality Checks and Power are Number of Quality Checks and Kilowatt Hours respectively. Further, the following data relating to their activities has been given in below table. SI. No: 1 2 Activity Quality Checks Power Capacity 22,500 Checks $ 1,00,000 KWH $ The consumption of Cost drivers for the 2 products A, B Activity Quality Checks Power Cost 4,50,000.00 3,00,000.00 Product - A Product - B 6750 QC 10250 QC 25000 KWH 60000 KWH 1. Kindly ascertain Cost allocated to each product A and B from each activity. 2. Also, Calculate for each activity, the cost of Unused capacity Sagar Manufacturing Ltd. manufactures 2 products A, B. Also there are 2 activities (Quality Checks and Power) on which it calculates activity cost rates based on Cost Driver capacity. The cost drivers for Quality Checks and Power are Number of Quality Checks and Kilowatt Hours respectively. Further, the following data relating to their activities has been given in below table. SI. No: 1 2 Activity Quality Checks Power Capacity 22,500 Checks $ 1,00,000 KWH $ The consumption of Cost drivers for the 2 products A, B Activity Quality Checks Power Cost 4,50,000.00 3,00,000.00 Product - A Product - B 6750 QC 10250 QC 25000 KWH 60000 KWH 1. Kindly ascertain Cost allocated to each product A and B from each activity. 2. Also, Calculate for each activity, the cost of Unused capacity
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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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