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 | Â 2,800 | Â $112,000 |
|
Materials handling |
Materials movements |
 8,000 |
 $96,000 |
|
Inspection |
Batches produced |
 2,800 |
 $70,000 |
| Machining costs | Machine hours | Â 50,000 | Â $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 activity based costing principles
(b) Calculate the budgeted overhead costs using absorption costing (absorb overhead using machine hours)
(c) How can the company reduce the ABC for Product XX
- Answer To Management Accounting Question No:ABC2 on Activity Based Costing
- Steps In Implementing Activity-Based Costing System(ABC):
- Introduction and Benefits/Advantages of Activity-Based-Costing System (ABC)
- Activity Based Costing Question No.5 (with answer)
- Accounting Question No ABC1 On Activity-Based Costing
- Answer To Accounting Test Question No. 1 On Activity Based Costing
- Activity Based System Question No 4 (with answer)
November 23, 2007
Tags: Activity based costing questions
Posted in: Activity-Based Costing
2 Responses
Answer To Management Accounting Question No:ABC2 on Activity Based Costing | FMAccounting - November 23, 2007
[...] Refer to Accounting Test Question No.ABC2 [...]
Management Accounting Test Question On Activity Based Costing | Basic College Accounting.com - November 30, 2007
[...] ABC 1 Â Â ABC2 [...]
Leave a Reply