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)В В Overhead per cost driver unit
(ii)В 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
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
