Ghaz Company produces two types of sound units: Deluxe and Regular. follows: eIvity data Is as Product-Costing Data Regular 50,000 RM369,000 45,000 90,000 Total Activity Usage Measures Units produced per year Deluxe 5,000 RM39,000 5,000 10,000 55,000 RM408,000 50,000 100,000 15 Prime cost Direct labor hours Machines hours Production runs Number of moves 10 120 60 180 Activity Cost Data (Overhead Activities) Cost (RM) 60,000 Activity driver Production runs Activity Setups Materials handling Number of moves 30,000 50,000 40,000 Power Machines hours Direct labor hours Testing Total 180,000 Required: a) Calculate the consumption ratios for each activity. b) Choose group activity based on the consumption ratios. c) Calculate a rate each pooled group of activities. d) Calculate unit product costs using the pool rates.

Ghaz Company produces two types of sound units: Deluxe and Regular. follows: eIvity data Is as Product-Costing Data Regular 50,000 RM369,000 45,000 90,000 Total Activity Usage Measures Units produced per year Deluxe 5,000 RM39,000 5,000 10,000 55,000 RM408,000 50,000 100,000 15 Prime cost Direct labor hours Machines hours Production runs Number of moves 10 120 60 180 Activity Cost Data (Overhead Activities) Cost (RM) 60,000 Activity driver Production runs Activity Setups Materials handling Number of moves 30,000 50,000 40,000 Power Machines hours Direct labor hours Testing Total 180,000 Required: a) Calculate the consumption ratios for each activity. b) Choose group activity based on the consumption ratios. c) Calculate a rate each pooled group of activities. d) Calculate unit product costs using the pool rates.

Name: Ghaz Company produces two types of sound units: Deluxe and Regular. A
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Description: Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is asfollows:Product-Costing DataDeluxe5,000RM39,0005,00010,00010Regular50,000RM369,00045,00090,000Total55,000RM408,00050,000Activity Usage MeasuresUnits produced per

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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