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A pharmaceutical company produces 3 different drugs. Total General Production Cost (CPM) of the enterprise in 2014 is 1,848,000TL. The enterprise uses the traditional method
A pharmaceutical company produces 3 different drugs. Total General Production Cost (CPM) of the enterprise in 2014 is 1,848,000TL. The enterprise uses the traditional method when loading GUMs into products and loads GUMs into products on a machine hour (ms) basis. 28,000 units of X,18,000 units of Y and 6,000 units of Z products, with a total of 84,000 ms working in 2014 produced. It took 42,000ms to produce this amount of product X,36,000ms to produce product Y, and 6,000ms to produce product Z. In addition, raw material and direct labor costs per unit of products are as follows. Find the unit costs of products X,Y and Z for this company that uses the traditional method. PRODUCT X I PRODUCTY PRODUCT Z I Believing that the traditional method did not give correct results in the direction of production, the factory manager decided to find the unit costs according to the Activity Based Costing (FIM) system. As a result of his efforts in this direction, he created five activity centers and five cost pools depending on them. The five cost pools it created, the shares these cost pools received from GM and the cost factors representing these pools are presented in the table below. The distribution of the cost factors consumed by the products is as follows. We calculate the unit cost for each product by applying the FIM system and interpret the results by comparing them with the traditional method
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