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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 driver units per product Total overhead per [...] Company XYZ has 6 standard products from stainless steel and brass.The company’s most popular product is Product XX. 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 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 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
|  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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