wrap TT QUOTE LUTTER Materials handling and dispatch 4 620 PROGRAMME HANDBOOK: JULY 2019 INTAKE MANCOSA: POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT The cost drivers to be used for the overhead costs are as follows: Cost Cost driver Set up costs Number of production runs Stores receiving Requisitions raised Inspection/Quality control Number of production runs Materials handling and dispatch Orders executed The number of requisitions raised on the stores was 40 for each product and the number of orders executed was 42, each order being for a batch of 10 of a product. OX OO HUAWEI P30 lite OO TRIPLE CAMERA 6 137% 7 INFORMATION The output of Project K of Turbo Limited is Product A and Product B and the company is keen on applying the principles of ABC costing. Relevant information pertaining to the two products for a given period appear below: Product A Product B Output in units 240 180 Machine hours per unit Direct materials cost per unit R100 R80 Direct labour cost per unit R49 R35 - 5 The two products are similar and are usually produced in production runs of 20 units and sold in batches of 10. Currently the production overheads are absorbed by using a machine hour rate, and the total of the production overheads for the period are as follows: Machine department costs (rent, rates, depreciation and supervision) Set-up costs Stores receiving Inspection/Quality control MaterHUAWEI P30 litspatch OO TRIPLE CAMERA 10 320 5 040 3 720 2 100 4620 QUESTION 4 (20) 4.1 REQUIRED Use the information provided below to calculate the unit overheads cost using Activity Based Costing (12) INFORMATION The output of Project K of Turbo Limited is Product A and Product B and the company is keen on applying the principles of ABC costing. Relevant information pertaining to the two products for a given period appear below: Product Product B Output in units 240 180 Machine hours per unit Direct materials cost per unit R100 R80 Direct labour cost per unit R49 R35 The two products are similar and are usually produced in production runs of 20 units and sold in batches of 10 Currently the production overheads are absorbed by using a machine hour rate, and the total of the production overheads for the period are as follows: Machine department costs (rent, rates, depreciation and supervision) Set-up costs Stores receiving Inspection/Quality control Materials handling and dispatch 10 320 5040 3720 2 100 4620 58 PROGRAMME HANDBOOK: JULY 2019 INTAKE wrap TT QUOTE LUTTER Materials handling and dispatch 4 620 PROGRAMME HANDBOOK: JULY 2019 INTAKE MANCOSA: POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT The cost drivers to be used for the overhead costs are as follows: Cost Cost driver Set up costs Number of production runs Stores receiving Requisitions raised Inspection/Quality control Number of production runs Materials handling and dispatch Orders executed The number of requisitions raised on the stores was 40 for each product and the number of orders executed was 42, each order being for a batch of 10 of a product. OX OO HUAWEI P30 lite OO TRIPLE CAMERA 6 137% 7 INFORMATION The output of Project K of Turbo Limited is Product A and Product B and the company is keen on applying the principles of ABC costing. Relevant information pertaining to the two products for a given period appear below: Product A Product B Output in units 240 180 Machine hours per unit Direct materials cost per unit R100 R80 Direct labour cost per unit R49 R35 - 5 The two products are similar and are usually produced in production runs of 20 units and sold in batches of 10. Currently the production overheads are absorbed by using a machine hour rate, and the total of the production overheads for the period are as follows: Machine department costs (rent, rates, depreciation and supervision) Set-up costs Stores receiving Inspection/Quality control MaterHUAWEI P30 litspatch OO TRIPLE CAMERA 10 320 5 040 3 720 2 100 4620 QUESTION 4 (20) 4.1 REQUIRED Use the information provided below to calculate the unit overheads cost using Activity Based Costing (12) INFORMATION The output of Project K of Turbo Limited is Product A and Product B and the company is keen on applying the principles of ABC costing. Relevant information pertaining to the two products for a given period appear below: Product Product B Output in units 240 180 Machine hours per unit Direct materials cost per unit R100 R80 Direct labour cost per unit R49 R35 The two products are similar and are usually produced in production runs of 20 units and sold in batches of 10 Currently the production overheads are absorbed by using a machine hour rate, and the total of the production overheads for the period are as follows: Machine department costs (rent, rates, depreciation and supervision) Set-up costs Stores receiving Inspection/Quality control Materials handling and dispatch 10 320 5040 3720 2 100 4620 58 PROGRAMME HANDBOOK: JULY 2019 INTAKE