Question
God aktivitet AS uses ABC calculation in its accounts. The company has established the following activity centres, cost drivers, distributed indirect costs and activity frequencies
"God aktivitet AS" uses ABC calculation in its accounts. The company has established the following activity centres, cost drivers, distributed indirect costs and activity frequencies per period:
Activity locations: | Cost drives | Distributed costs | Activity frequency per period | Cost per drive unit |
Machine adjustments | Number of lineups | 200,000 | 100 lineups | 2,000 |
Material management | Weight on raw materials | 100,000 | 50,000 kg | 2 |
Environmental control | Focus on chemicals | 50,000 | 10,000 kg | 5 |
Quality control | Number of inspections | 75,000 | 1,000 inspections | 75 |
Administration | Machine hours | 200,000 | 20,000 hours | 10 |
Total indirect costs | 625,000 |
For an order of 1,000 units of one of the products they supply, the following applies:
Machine setups | 4 times |
Raw materials | 10000 kg |
Environmentally hazardous raw materials | 2000 kg |
Quality inspections | 10 times |
Machine hours | 500 hours |
Calculate the activity rates for the individual activity locations:
the activity rates | ||
Machine setups | 4 times | 8 000 |
Raw materials | 10000 kg | 20 000 |
Environmentally hazardous raw materials | 2000 kg | 10 000 |
Quality inspections | 10 times | 750 |
Machine hours | 500 hours | 5 000 |
QUESTION:
What is the total indirect cost to be charged to the 1,000-unit order, and what will be the indirect cost per unit? I NEED TO FILL THE COLUMNS NAMED COST PER DRIVE UNIT AND INDERECT COST AND INDIRECT COST PER UNIT.
Please, can you answer fully and as I have described above
Activity locations: | Drive units | Cost per drive unit | Indirect cost |
Machine adjustments | 4 000 | ? | ? |
Material management | 10 000 000 | ? | ? |
Environmental control | 2 000 000 | ? | ? |
Quality control | 10000 | ? | |
Administration |
Indirect cost per unit?: |
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