QuestionsQuestion 1Aero3D Ltd produces a range of filament cartridges for 3D printers. The cartridges areproduced in batches. The production process involves condensing, shaping, and putting onspools using two special machines and manual labour.Two of their filament cartridges are the XS PRO and the POLYX both made fromthermoplastic polyester. The XS PRO is selling for £175 and the PLOYX for £225.The budgeted data for 2021 is as follows:MODEL:XS PROPOLYX3,4001,800Budgeted output for the yearunitsunitsDirect material weight per unit1.2kg1.4kgDirect material cost per unit£8£10Direct labour time per unit0.1 hour0.2 hourDirect labour cost per unit£2.00£4.00Number of batches6040Shaping machine time per unit0.50 hour 0.70 hourACTIVITYCOST POOLCondensing machine£450,000Shaping machine£130,000Manual handling of material£55,000Budgeted core costs, for management and administration, are £62,000.COST DRIVERNumber of production batchesShaping machine hoursWeight of material handled Required:a) Using Activity Based Costing, calculate the rate for each cost driver.b) Using activity based budgeting, prepare a budgeted yearly operating statement forAero3D Ltd. Show the following separately, within the statement.i. The budgeted output for each product per year;ii. The contribution to profits for each product and in total before chargingactivity based costs;iii. The profit for each product and in total after charging activity based costsbut before charging core costs (non-activity based costs);iv. The total profit after charging core based costs.

Name: QuestionsQuestion 1Aero3D Ltd produces a range of filament cartridges
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: QuestionsQuestion 1Aero3D Ltd produces a range of filament cartridges for 3D printers. The cartridges areproduced in batches. The production process involves condensing, shaping, and putting onspools using two special machines and manual labour.Two