Betta Ball Sports manufactures two products (Rubber Soccer Ball & Leather Soccer ( Ball) using the same machinery processes. You are provided with the following information relating to the existing production period Product Volume Material cost Direct Labour Machine Time per unit (R) Cost per unit per unit (R) (Hours) Rubber Ball 1 000 5.50 0.35 Leather Ball 700 2.00 1.00 Total production Overheads are as follows: Machine department: R50 000 (machine hours is the cost driver) Set-up costs: R5 000 Ordering Costs-materials: R2 000 Handling materials: R8 000 An analysis of production overhead activities for the period for the volume of products manufactured revealed the following: Product # set-ups # material orders # times material were handled Rubber Ball 1 1 2 Leather Ball 2 1 3 Calculate the total budgeted product cost per unit for the Rubber Ball using Activity Based Costing (ABC). Round all answers to two decimal places. 5.00 20.00

Betta Ball Sports manufactures two products (Rubber Soccer Ball & Leather Soccer ( Ball) using the same machinery processes. You are provided with the following information relating to the existing production period Product Volume Material cost Direct Labour Machine Time per unit (R) Cost per unit per unit (R) (Hours) Rubber Ball 1 000 5.50 0.35 Leather Ball 700 2.00 1.00 Total production Overheads are as follows: Machine department: R50 000 (machine hours is the cost driver) Set-up costs: R5 000 Ordering Costs-materials: R2 000 Handling materials: R8 000 An analysis of production overhead activities for the period for the volume of products manufactured revealed the following: Product # set-ups # material orders # times material were handled Rubber Ball 1 1 2 Leather Ball 2 1 3 Calculate the total budgeted product cost per unit for the Rubber Ball using Activity Based Costing (ABC). Round all answers to two decimal places. 5.00 20.00

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...

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