Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
excel formula please Jazz Limited manufactures electronic components for machines and has just made the change to an activity based costing system which will assign
excel formula please
Jazz Limited manufactures electronic components for machines and has just made the change to an activity based costing system which will assign labour, manufacturing and non-manufacturing overhead costs to products. A bill of activities for one of company's major products Component ET27 is given below: Activity Prepare purchase order Process payables Prepare payroll Process sales order, pack and dispatch Component ET 27 Annual Quantity of Cost per unit of Activity Driver Activity Driver used by Component ET 27 $ 22 per purchase order 80 purchase orders $ 8 per invoice received 240 invoices $ 9 per payslip 550 payslips $ 26 per sales order 2 000 sales orders Program solder robots Solder circuits Assemble circuit boards Wire in and test switch Insert fuse Design switch $ 126 per program $ 2 per solder joint $5 per board $ 18 per switch $ 11 per fuse $ 15,270 for Component ET 27 350 programs 120 000 solder joints 20 000 boards 20 000 switches 20 000 fuses The company produced 24,000 Components of ET 27 for the year. The direct material cost per Component ET 27 is $48. Before introducing activity based costing, under a conventional (traditional) plant-wide overhead application the company used to allocate all conversion costs based on direct labour hours, calculated as $ 60 per direct labour hour. Under this system Component ET 27 would have used 18,500 direct labour hours (which would have had overheads applied to it). REQUIRED: (Calculations to 3 decimal places - Show all workings) Compute the total unit cost for Component ET 27- (1) Under the previous conventional costing system. (3 Marks) (ii) Under the new activity-based costing (ABC) system
excel formula please
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fde5e6554b_606668fde5e0e2ea.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fde5ef1a60_606668fde5e92dc3.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started