Archive for the ‘Activity-Based Costing’ Category
Activity Based Costing Question No.5 (with answer)
A company manufactures two products, X and Y, using the same equipment and similar processes. Data for the production of these items in one period is shown below:
Data:
Quantity produced per period
X
Y
Material cost per unit
20,000
10,000
Direct labor hours per unit
$20
Machine hours [...]
December 5, 2009
Tags: Activity based costing questions, Activity based costing questions and answers Posted in: Activity-Based Costing 
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Activity Based System Question No 4 (with answer)
Question:
1(a) For below table, please fill up the following values
(i)Â Â Overhead per cost driver unit
(ii)Â Total Overhead per product per activity
(iii) Cost per item
Activity
Total Overheads
Total Cost driver units
Overhead per cost driver unit
Cost driver [...]
December 4, 2009
Tags: Activity based costing questions, Activity based costing questions and answers Posted in: Activity-Based Costing No Comments
What is The Bolton Consulting Group (BCG) Matrix And Explain The Different Stage Of BCG matrix ( Part 1)
The Bolton Consulting Group (BCG) matrix is a model which basically enables one to plan for strategies at each stage at which an individual product-market is perceived be in terms of market growth and the firm’s relative strength (market share).
Before going further, let’s look at the features of this BCG matrix.
The BCG matrix focuses on [...]
November 24, 2009
Tags: BCG matrix, BUSINESS STRATEGY, corporate strategy Posted in: Activity-Based Costing, BUSINESS STRATEGY No Comments
Answer To Management Accounting Question No:ABC2 on Activity Based Costing
Refer to Accounting Test Question No.ABC2
(a) Computation of the activity based overheads
Step 1: Compute cost per unit of cost driver
= Cost pool / cost driver volume
Activity
Cost pool (a)
Cost driver volume/yr (b)
Cost/unit of cost driver (a)/(b)
Purchasing
$75,000
1,500
$50/purchase order
Setting
$112,000
2,800
$40/batch
Materials handling
96,000
8,000
$12/movement
Inspection
$70,000
2,800
$25/batch
Machining
$150,000
50,000
$3/machine hour
Step 2: Compute the volume of cost drivers consumed by Product XX
Purchase orders (given) =25
Batches=15,000/100=150
Materials movement=150 batches [...]
November 23, 2007
Tags: Activity based costing questions and answers Posted in: Activity-Based Costing One Comment
Management Accounting Question ABC No2 On Activity Based Costing
Company XYZ has 6 standard products from stainless steel and brass.The company’s most popular product is Product XX.  Â
The following are Product XX’s data for next year budget:
Activity
Cost Driver
Cost driver volume/yr
Cost pool
Purchasing
Purchase orders
1,500
$75,000
Setting
Batches produced
 2,800
 $112,000
Materials handling
Materials movements
 8,000
 $96,000
Inspection
Batches produced
 2,800
 $70,000
Machining costs
Machine hours
 50,000
 $150,000
Â
Purchase orders
25
Output
15,000 units
Production batch size
100 units
Materials movements per batch
6
Machine hours per unit
0.1
Required:
(a) Calculate the budgeted overhead costs using [...]
November 23, 2007
Tags: Activity based costing questions Posted in: Activity-Based Costing 2 Comments
Answer To Accounting Test Question No. 1 On Activity Based Costing
Refer to Accounting Test Question No.1
(a) Computation of the activity based costs and profits for each contract.
Step 1: Compute cost per unit of cost driver
= Cost pool / cost driver volume
Activity
Cost pool (a)
Cost driver volume/yr [...]
November 23, 2007
Tags: Activity based costing questions Posted in: Activity-Based Costing 2 Comments
Accounting Question No ABC1 On Activity-Based Costing
Company XYZ has 2 fixed price contract for 2 different customers.The company has enough capacity for both contracts but is uncertain whether they will be profitable.
Data as follows:
Customer
AAA
BBB
Component Type
A999
B999
Contract Value($)
$27,000
$100,000
Contract Quantity
1,000 unit
2,000 units
Material cost/unit
$15
$20
Moulding time/batch
5 hours
7.5 hours
Batch Size
100 units
50 units
Annual Budgeted overheads [...]
November 23, 2007
Tags: activity based costing, Activity based costing questions Posted in: Activity-Based Costing 2 Comments
