Exercise C3 (Activity based costing) A company produces a product V as shown in the figure below. Cost driver volume Consumption coefficient Charge rate of cost centre cost centre 1 price per unit 1: 9 = 8 2 process I (TT) product V 4 cost centre 2 price per unit 2: Q = 10 process II (TT) (11 points) cost centre 3 price per unit 3: % = 15 Per-unit costs are calculated by applying activity based costing. An aqn-process charge (based on aqi-process costs) of 12,50% is considered when calculating per-unit costs. a) Please calculate the production coefficient aiv. b) Please calculate the process costs (T) of process I (neglecting aqn-charge). The product V is sold at a price which includes an operational profit margin of 10% of the revenue (i.e sales price). c) Please calculate the sales price pv [ per unit V] of product V. 2 Aqn-process: activity quantity neutral process: e.g costs of an employee supervising the production process. 3 Aqi-process: activity quantity induced process: e.g. costs of working time producing the product K (work time). Exam 1/6/5 Page 4 of 11 page(s) The government introduces an environmental tax which is charged on the process costs of second process II () with a tax rate of t%. The first process (process I) is not taxed. Therefore the company takes two measures to balance the environmental tax effect: 1. The selling price py of product V is increased by 7,50% (i.e. 30,-- ). 2. The consumption coefficient V311 [units of cost centre 3 per process II] is reduced (from 8) to 5. d) Please calculate the tax rate t (in %) on the process costs () which matches the requirements 1. and 2.

Exercist C3 (Activity based costing) (11 peints) A compary products at peoduct V as shown in thet figure below. Per-unit costs are calculaled by applying activity based costing. An aqn-process chayge? (based on aq)-process costs) of 12,50% is considered ahen calculating per-unit costs. a) Please calculate the production coefficient an. b) Please calculate the process costs (1b) of process 1 (nentecting agn-charge). The product V is sold at a price which includes an operational profit margin of tow of the revenue (0.e saler price) c) Please calculate the sales price pv If per init V ) of greduct V. Aqn-process actiely quantiy neifral process: e g costs of an exployee sigenting the jroduction procest Ean 165 Pape 4 at 41 mesen The government introduces an environmental tax which is charged on the process costs of second process I (m) ) with a tax rale of the. The first process (process 1 ) is pot taxed Thecelore the company takes two measures io balance the environmental tax ellect: 1. The selling price p. of product V is increased by 7,50% (L. . 30,1 (). 2. The consumption coetficient vin lunits of cest centere 3 per process ii) is reduced (trom .3) to 5 d) Please calculate the tax rate it (in W ) on the process costs (i ) which matahes the requirements 1 , and 2