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general pty plans to manufacture to lines of tyres in this coming year truck and motorbike . the company is considering introducing activity based costing
general pty plans to manufacture to lines of tyres in this coming year truck and motorbike . the company is considering introducing activity based costing system .Given below are each activity, its cost and activity driver
Activity cost. activity driver
material setups 150000. no of setups
material handling. 200000. no of parts
cutting. 500000. no of parts
assembly 400000. drct no hrs
finishing 600000 no of units
level of activity for the year is
lounge. patio
units to be produced 12000. 8000
no of setups. 30. 45
no ofparts per unit. 20. 10
drct labour hrs per unit 4. 2
under an activity based costing systym what is the activity cost per unit of activity driver for assembly 6 marks
under an activity based costing system what is the total cost of lounge chairs for the yr 10 marks
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