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
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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
