Question 3Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is asfollows:Product-Costing DataRegular50,000RM369,00045,00090,000Activity Usage MeasuresUnits produced per yearPrime costDeluxeTotal5,000RM39,00055,000RM408,000Direct labor hours5,00050,000Machines hours10,000100,000Production runs10515Number of moves12060180Activity Cost Data (Overhead Activities)Activity driverProduction runsActivityCost (RM)60,00030,00050,00040,000SetupsMaterials handlingNumber of movesPowerMachines hoursTestingTotalDirect labor hours180,000Required:a) Calculate the consumption ratios for each activity.b) Choose group activity based on the consumption ratios.c) Calculate a rate for each pooled group of activities.d) Calculate unit product costs using the pool rates.

Question 3 Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is as follows: Product-Costing Data Activity Usage Measures Units produced per year Prime cost Direct labor hours Machines hours Production runs Number of moves Regular 50,000 RM369,000 Deluxe Total 5,000 RM39,000 5,000 55,000 RM408,000 45,000 50,000 10,000 90,000 100,000 10 5 15 120 60 180 Activity Cost Data (Overhead Activities) Cost (RM) 60,000 30,000 50,000 Activity driver Production runs Number of moves Activity Setups Materials handling Power Machines hours Testing Direct labor hours 40,000 180,000 Total

Question 3 Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is as follows: Product-Costing Data Activity Usage Measures Units produced per year Prime cost Direct labor hours Machines hours Production runs Number of moves Regular 50,000 RM369,000 Deluxe Total 5,000 RM39,000 5,000 55,000 RM408,000 45,000 50,000 10,000 90,000 100,000 10 5 15 120 60 180 Activity Cost Data (Overhead Activities) Cost (RM) 60,000 30,000 50,000 Activity driver Production runs Number of moves Activity Setups Materials handling Power Machines hours Testing Direct labor hours 40,000 180,000 Total

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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