Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Chee Faii Sdn Bhd has RM2,500,000 overhead costs which have been assigned to the following activity cost pool. Activity Cost Pool Overhead Cost (RM) Machine
Chee Faii Sdn Bhd has RM2,500,000 overhead costs which have been assigned to the following activity cost pool.
Activity Cost Pool | Overhead Cost (RM) |
Machine Set-up | 200,000 |
Purchasing Materials | 500,000 |
Inspecting Products | 300,000 |
Assembling Products | 600,000 |
Machine Processing | 900,000 |
TOTAL OVERHEAD | 2,500,000 |
other details
COST DRIVING | DVK | WJB | HZW | TOTAL |
Machine Setups | 2,000 | 1,500 | 1,500 | 5,000 |
Number of Purchase Requisitions | 5,000 | 4,000 | 1,000 | 10,000 |
Inspection Hours | 10,000 | 9,000 | 1,000 | 20,000 |
Number of Parts Requiring Labor | 15,000 | 3,000 | 12,000 | 30,000 |
Machine Hours | 80,000 | 60,000 | 10,000 | 150,000 |
DVK | WJB | HKW | |
Direct Materials | RM 490,000 | RM 600,000 | RM 2,925,000 |
Direct Labor | RM 1,400,000 | RM 275,000 | RM 1,075,000 |
Productions (Units) | 140,000 | 100,000 | 250,000 |
you are Required:
1a. Compute the production cost per unit for product DVK, WJB and HZW by using Activity Based Costing.
1b.Determine the Selling Price of the following products
i) Product DVK Selling price based on 25% profit margin
ii) Product WJB Selling price based on 25% mark up costs.
iii) Product HZW Selling price based on 30% profit margin.
please answer step by steps
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