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HULLI MANAGEMENT QUESTION 4 4.1 REQUIRED (20) the information provided below to calculate the overhead costs per unit for each product using activity-based costing, INFORMATION
HULLI MANAGEMENT QUESTION 4 4.1 REQUIRED (20) the information provided below to calculate the overhead costs per unit for each product using activity-based costing, INFORMATION max Inc produces two products viz. A and B. The same equipment is used to produce both products. Details of the cost of activities, inputs and outputs are as follows: Overheads cost analysis: Materials handling Materials procurement Set-up Quality control Production 540 000 180 000 540 000 900 000 2 160 000 4 320 000 Cost driver analysis Overheads Materials handling Materials procurement Set-up Quality control Production Cost drivers Materials movements Number of orders Number of set-ups Number of inspections Direct labour hours Product 360 640 216 540 144 000 Product B 180 360 1 44 360 36 000 Total 540 1000 360 900 180 000 Annual output Product A Product B 144 000 units 36 000 units 4.2.. REQUIRED Calculate the following from the information given below: 4.2.1 Break-even quantity. 4.2.2 The number of units that must be sold to obtain a net profit of R300 000. 4.2.3 Break-even quantity, if the selling price is reduced by R20 per unit. SSS INFORMATION R400 following per unit projected data for a product that is the output of Project Mis provided below: R140 R60 Selling price Direct materials Direct labour Variable manufacturing overheads R40 manufacturing overheads are expected to amount to R560 000. Projected administration and keting costs comprise the following: Fixed costs, R400 000 Sales commission of 10%. RCRAMME HANDBOOK: JANUARY 2020 INTAKE
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