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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
Question: 1(a) For below table, please fill up the following values (i) Overhead per cost driver unit (ii) Total Overhead per product per activity (iii) Cost per item Activity Total Overheads Total Cost driver units Overhead per cost driver unit Cost [...] 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)
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FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four, Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.
Also author to another very popular free educational accounting cum finance blog: http://basiccollegeaccounting.com under the branding of College Accounting Coach. |
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