Question 3 Matilda Manufacturing designs and manufactures four products A, B, C and D for the telecommunications industry. Output and cost data for the period just ended are as follows: ABCD No of production Material Output runs in the period Units 15 20 100 350 4 3 6 4 17 Short run variable costs Set-up costs cost per unit £ Expediting and scheduling costs Materials Handling Costs 40 80 40 80 Direct labour cost per hour is £6. Overhead costs are as follows: £ Direct labour hours per unit 4,000 8,000 7,000 6,000 25,000 1 3 3 2 The following cost drivers have been identified: Short run Variable Costs Set up costs Expediting and Scheduling Costs Materials Handling Costs Required: a) Calculate the product cost using a Traditional and ABC approach. = Production Runs = Production Runs = Machine Hours = Labour Hours Machine hours per unit 2422
Question 3 Matilda Manufacturing designs and manufactures four products A, B, C and D for the telecommunications industry. Output and cost data for the period just ended are as follows: ABCD No of production Material Output runs in the period Units 15 20 100 350 4 3 6 4 17 Short run variable costs Set-up costs cost per unit £ Expediting and scheduling costs Materials Handling Costs 40 80 40 80 Direct labour cost per hour is £6. Overhead costs are as follows: £ Direct labour hours per unit 4,000 8,000 7,000 6,000 25,000 1 3 3 2 The following cost drivers have been identified: Short run Variable Costs Set up costs Expediting and Scheduling Costs Materials Handling Costs Required: a) Calculate the product cost using a Traditional and ABC approach. = Production Runs = Production Runs = Machine Hours = Labour Hours Machine hours per unit 2422
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter26: Cost Allocation And Activity-Based Costing
Section: Chapter Questions
Problem 26.8EX: Identifying activity bases in an activity-based cost system Select Foods Inc. uses activity-based...
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