CJD Ltd manufactures plastic components for the car industry. The following budgeted information is available for three of their key plastic components: Product W X Y Estimated production volume, 10,000 units 15,000 units 18,000 units Direct-material cost per unit $50 $40 $35 Direct labor cost per unit $30 $35 $30 The total number of activities for each of the three products for the period is as follows: W X Y Number of purchase requisitions 1,200 1,800 2,000 Number of set-ups 240 260 300 Overhead costs have been analysed as follows: Receiving/inspecting quality assurance $1,400, 000 Production scheduling/machine set-up $1,200, 000 Using the activity based costing system, answer the following: i. The receiving/inspecting quality assurance cost per requisition is: ii. The Production scheduling/machine set cost per set up is: iii. The total
CJD Ltd manufactures plastic components for the car industry. The following budgeted information is available for three of their key plastic components: Product W X Y Estimated production volume, 10,000 units 15,000 units 18,000 units Direct-material cost per unit $50 $40 $35 Direct labor cost per unit $30 $35 $30 The total number of activities for each of the three products for the period is as follows: W X Y Number of purchase requisitions 1,200 1,800 2,000 Number of set-ups 240 260 300 Overhead costs have been analysed as follows: Receiving/inspecting quality assurance $1,400, 000 Production scheduling/machine set-up $1,200, 000 Using the activity based costing system, answer the following: i. The receiving/inspecting quality assurance cost per requisition is: ii. The Production scheduling/machine set cost per set up is: iii. The total
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
CJD Ltd manufactures plastic components for the car industry. The following budgeted information is available for three of their key plastic components:
Product
W
X
Y
Estimated production volume,
10,000 units
15,000 units
18,000 units
Direct-material cost per unit
$50
$40
$35
Direct labor cost per unit
$30
$35
$30
The total number of activities for each of the three products for the period is as follows:
W
X
Y
Number of purchase requisitions
1,200
1,800
2,000
Number of set-ups
240
260
300
Overhead costs have been analysed as follows:
Receiving/inspecting quality assurance $1,400, 000
Production scheduling/machine set-up $1,200, 000
Using the activity based costing system, answer the following:
i. The receiving/inspecting quality assurance cost per requisition is:
ii. The Production scheduling/machine set cost per set up is:
iii. The total receiving/inspecting quality assurance cost assigned to Product W is:
iv. The total receiving/inspecting quality assurance cost assigned to Product Y is:
v. The total Production scheduling/machine set-up assigned to Product Y is:
vi. The Receiving/ inspecting quality assurance cost per unit for Product W is:
vii. The Production scheduling/machine set-up cost per unit for Product Y is:
viii. The Receiving/ inspecting quality assurance cost per unit for Product X is:
ix. The total cost per unit of Product W is:
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