2 Answer ved Marked out of 100 P Rag question Barakah Electronics Incorporated is a leading producer of high-end furniture in Ajman Over the last ten years, the company determined all products cost using a simple costing approach and wish to implement an Activity-Based Costing system that was perceived to offer a higher level of accuracy. As a newly appointed Cost Accounting executive you are required to provide a report on product costing using the Activity-Based Costing system. The costing system at Barakah has five indirect cost pools (Production scheduling material handling, machine setup, product assembly. and packaging and inspection). The company currently produced two products. Costa-4 doors Wardrobe and Camellia Study Desk. Total budgeted costs in each indirect cost pool the budgeted quantity of activity drivers and information related to the products are as follows Budgeted Figures Overhead (AED) Activity Driver Quantity of Activity Driver Particulars Production runs 8.000 320,000 160.600 319.800 Moteris moves Production scheduling Material handling Machine setup Product assembly Packaging & inspection 7.300 12 302 97 500 13 9:300 Number for Particulars Costa-li doors dy Desk Production runs Material moves Machine setups Machine hours Number of inspections REQUIRED REQUIRED: b. Compute the total overhead allocated to each product under an activity-based costing system (10 marks) 2 Answer ved Marked out of 100 P Rag question Barakah Electronics Incorporated is a leading producer of high-end furniture in Ajman Over the last ten years, the company determined all products cost using a simple costing approach and wish to implement an Activity-Based Costing system that was perceived to offer a higher level of accuracy. As a newly appointed Cost Accounting executive you are required to provide a report on product costing using the Activity-Based Costing system. The costing system at Barakah has five indirect cost pools (Production scheduling material handling, machine setup, product assembly. and packaging and inspection). The company currently produced two products. Costa-4 doors Wardrobe and Camellia Study Desk. Total budgeted costs in each indirect cost pool the budgeted quantity of activity drivers and information related to the products are as follows Budgeted Figures Overhead (AED) Activity Driver Quantity of Activity Driver Particulars Production runs 8.000 320,000 160.600 319.800 Moteris moves Production scheduling Material handling Machine setup Product assembly Packaging & inspection 7.300 12 302 97 500 13 9:300 Number for Particulars Costa-li doors dy Desk Production runs Material moves Machine setups Machine hours Number of inspections REQUIRED REQUIRED: b. Compute the total overhead allocated to each product under an activity-based costing system (10 marks)
