Home Insert Draw Page Layout Terms Data Review View Calibri 12 ' ' 1. Wrap lest General Poate Dee Mergea Center - 5. %) Conditional Format Formaling - We Styles Copboard Font Alignment Nube G21 A 1. Question 1 - ABC Costine (12 marks total) 2 Thiesson Ltd. makes two products: rims and rods. They have a traditional costing system and applies manufacturing overhead based on direct labour-hours 3 regarding the two products follow: 1 Rims Rods 5 Annual Production 45,500 19,500 $ 221.00$ 604.50 $ 5 Selling price per unit Direct material per unit Direct Labour per unit Direct Labour rate per hour los 45.37 S 27.04S 33.80 $ 82.81 81.12 33.80 $ $ 1 Estimated total department overhead 3,452,800 2 Estimated total DLHS 83,200 3 Required: a) Determine the unit costs of both the Rims and Rods products using the company's traditional costing system. (6 marks) POHR per DLH Rims 32 Variable costing Rods #3 Budgeting * Segment Reporting *5 Relevant Costing #1 ABC Costing Type here to search Calibri -12 ' ' General Ilili 25 Wiap lert Merge & Centet - Paste BTU- AA- IHI S - % IM Conditional Formatas Formatting Table Styles Clipboard Font Alignment Number 521 B D E Required: a) Determine the unit costs of both the Rims and Rods products using the company's traditional costing system. (6 marks) POHR per DLH Rims Rods Direct Materials Direct Labour Overhead Total unit cost b) Determine the unit costs for each product using Activity Based Costing (ABC). (6 marks) Expected Activity Total Rods Rims Overhead Activity Cost Pool Activity Measure Ascomhline Produits In HS #1 ABC Costing +2 Variable costing 1 5808 3 Budgeting 82200 # Segment Reporting 36.400 46 80 25 Relevant Costing Foto Clipboard Font Alignment Number G21 X for A C D E F G 25 26 27 b) Determine the unit costs for each product using Activity Based Costing (ABC). (6 marks) 28 29 Expected Activity Activity Measure Overhead Total Rims Rods DLHS Batches 83,200 6,240 $ 1,580,800 s 624,000 $ 1,248,000 $ 3,452,800 36,400 2,995 1,414 46,800 3,245 2,746 Machine hours Activity Cost Pool 30 31 Assembling Products 32 Preparing batches 33 Milling 34 Total 35 36 37 Direct Materials 38. Direct Labour 39 Overhead 40 Total unit cost 4,160 Rims Rods 41 42 #1 ABC Costing +2 Variable costing 23 Budgeting #5 Relevant Costing #4 Segment Reporting Ready TE Type here to search Formatting Number Lable Styles Format Sona find Styles Cell 1 K M Optional Table for Rough Work Rims Rods Total Overhead Activity Rates Activity Per Unit Overhead Activity Total Overhead Per Unit Overhead Per unit Per unit 5 Relevant Costing e 3 Budgeting 4 Segment Reporting
