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A toy manufacturer makes its bestselling doll in a production line that includes two sequential stage: assembly and finishing. You have been given the following
A toy manufacturer makes its bestselling doll in a production line that includes two sequential stage: assembly and finishing. You have been given the following information relative to January (assume company uses weight The total equivalent units completed in terms of Conversion Costs in January in the Assembly Department was: a. 22,000 b. 17,300 c. 19,600 d. 15,300 for allocating their overheads. It is now planning a major expansion and its managementing is worriective about making Costing (ABC). They have used an expert to advise them on the business cost drivers and identified the following three key activities and respective cost drivers: Customer activities - cost driver: number of customer orders Equipment activities - cost driver: number of machine set-ups Purchasing activities - cost driver: number of purchase orders The following data was collected for 2017 : In the current absorption costing method, overheads are allocated on the basis of machine hours. In reviewing the overheads ahead of the trial to implement ABC, overheads were allocated to the three cost pools as follows: Customer activities - 50% Equipment activities - 20% Purchasing activities - 30% The Purchasing activities overhead cost allocated to products C and D are, are respectively (in Es): a. 0.74 and 47.05 b. 0.74 and 9.75 c. 0.05 and 14.80 d. 0.06 and 9.75 A toy manufacturer makes its bestselling doll in a production line that includes two sequential stages: assembly and finishing. You have been given the following information relative to January (assume company uses weightan awaracal. The number of equivalent completed units in January in the Finishing department for Costs from the previous department, Material cost (assuming material are added halfway through the process) and Conversion costs are respectively: a. 12,000;12,000;18,300 b. 21,000;21,000;18,300 c. 21,000;21,000;21,000 d. 21,000;12,000;18,300
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