Answered step by step
Verified Expert Solution
Question
1 Approved Answer
68.48 (appendix) Estimating activity costs; assigning activity centre costs to activities: manufacturer Refer to Cases C846 and C8.47. Notwithstanding your answers so far, assume the
68.48 (appendix) Estimating activity costs; assigning activity centre costs to activities: manufacturer Refer to Cases C846 and C8.47. Notwithstanding your answers so far, assume the following costs and L08.13 resource drivers for the mixing centre: Cravings for Cakes mixing centre Costs and resource drivers Costs Resource drivers Wages $45000 Percentage of labour time Building costs 8000 Floor space occupied Depreciation 10000 Machine hours Consumables 5000 Percentage of labour time Energy 16000 Kilowatt hours Other 3000 Percentage of labour time Total $87 000 U.B. Bright has identied the following activities that take place in the mixing centre, and estimates that they use the following percentage of labour time and oor space: Cravings for Cakes mixing centre Activities and resource drivers used Activity Percentage of la hour time Percentage of oor space Set up scales 20 5 Weigh ingredients 10 5 Load mixers 25 10 Operate mixers 30 50 Clean mixers ]0 20 Move mixture to lling _5 2 Total E96 @% The only activity that makes signicant use of machinery (and therefore depreciation and energy) is 'operate mixers'. Required: 1. Calculate the cost of each activity performed in the mixing centre. 2. Explain how U.B. Bright would have collected the information necessary to identify the activities and their resource driver consumption. 3. What steps can Bright take to ensure that this information is reliable? Classify each activity as unit, batch, product or facility level. P
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started