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all content needed is provided please show full working out. Fenton Ltd - continued: The finance office (cost and management accounts) recently performed an 'activity
all content needed is provided please show full working out.
Fenton Ltd - continued: The finance office (cost and management accounts) recently performed an 'activity based production systems analysis for the fixed production overheads. The result is the table below: Cost Cost driver Total cost driver quantity per period Indirect production overhead recovery rate 100 60.00 Set up costs Production scheduling Quality control Depreciation Raw materials storage Total: 6,000 Set ups 1,624 Set ups 18,920.60 Inspections 7,925.40 Machine hours 2,880 Materials movements 37,350 46 2,389 777 35.30 7.92 10.20 1440 2.00 A further analysis has produced the following indirect production overhead resource required for each product: Activity Based Resource (Cost driver quantity) Requirement (by product) Order / product: Order 1101 'A' Order 1102 'B' Total Order 1103 CP 10 Set ups 35 35 80 2,389 800 639 950 Inspections Machine hours 247 330 200 Materials movements 720 320 400 1,440 b. Recalculate the gross profits (by product an in total) after allocating fixed production overheads to products using an activity - based system 10 Marks The task 5 b. mark include marks allocated to short descriptive notes to workings (Step by Step Solution
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