Question
Bronze Plc produces two main products called 'marble' and 'pearl'. It has been using the traditional absorption costing method to date, but now wants to
Bronze Plc produces two main products called 'marble' and 'pearl'. It has been using the traditional absorption costing method to date, but now wants to switch to the ABC method. The following information has been provided in order to apply the ABC method to determine the cost Costs pools Total Costs Cost Drives OMR Set-up costs 12,000 Number of set ups Material Handling costs 11,000 Machine hours Depreciation 55,000 Machine hours Factory Lease 22,000 Machine Hours Inspection costs 8,000 Number of inspections Other information for the period is as follows: Marble Pearl kannnnite 20.000 units Other information for the period is as follows: Marble Pearl Production 10,000 units 20,000 units Machine hours per unit 15,000 40,000 Number of set-ups 11 9 Number of inspections 8 12 A. What is the cost per set up? B. What is the material handling cost per machine hour? C. What is the rate of depreciation per machine hour? D. What is factory lease cost per machine hour? E. What is the cost per inspection? 0819 Production Machine hours per unit 10,000 units 20,000 units 15,000 40,000 Number of set-ups 11 9 Number of inspections 8 12 A. What is the cost per set up? B. What is the material handling hour? OMR 1,500 C. What is the rate of depreciati bur? OMR 1,090 D. What is factory lease cost per OMR 600 E. What is the cost per inspectio OMR 1,333 Pear Production 10,000 units 20,000 units Machine hours per unit 15,000 40,000 Number of set-ups 11 9 Number of inspections 8 12 A. What is the cost per set up? B. What is the material handling cost per machine hour? C. What is the rate of depreciation per machine hour? OMR 0.367 D. What is factory lease cost per machine hour? OMR 0.275 E. What is the cost per inspection? OMR 0.200 OMR 1.364 Marble Pearl Production 10,000 units 20,000 units Machine hours per unit 15,000 40,000 Number of set-ups 11 9 Number of inspections 18 12 A. What is the cost per set up? B. What is the material handling cost per machine hour? C. What is the rate of depreciation per machine hour? D. What is factory lease cost per machine hour? OMR 3.667 E. What is the cost per inspection? OMR 1.833 OMR 1.375 OMR 1.000 Mari Pearl Production Machine hours per unit 10,000 units 20,000 units 15,000 40,000 Number of set-ups 11 9 Number of inspections 8 12 A. What is the cost per set up? B. What is the material handling co OMR 400 ur? OMR 666 C. What is the rate of depreciation OMR 1,000 D. What is factory lease cost per m OMR 727 E. What is the cost per inspection 4 Marble Pearl Production Machine hours per unit 10,000 units 20,000 units 15,000 40,000 Number of set-ups 11 9 Number of inspections 8 12 A. What is the cost per set up? B. What is the material handling cost per machine hour? C. What is the rate of depreciation per machine hour? D. What is factory lease cost per machine hour? OMR 3.667 E. What is the cost per inspection? OMR 1.833 OMR 1.375 OMR 1.000 Marble Pearl Production Machine hours per unit 10,000 units 20,000 units 15,000 40,000 Number of set-ups 11 9 Number of inspections 8 12 A. What is the cost per set up? B. What is the material handling cost per machine hour? C. What is the rate of depreciation per machine hour? D. What is factory lease cost per machine hour? OMR 3.667 E. What is the cost per inspection? OMR 1.833 OMR 1.375 OMR 1.000
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