Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need answer that able to fulfill the marks stated all the relevant calculation workings required. Besidesall answer of calculation must be rounded up to
I need answer that able to fulfill the marks stated all the relevant calculation workings required. Besidesall answer of calculation must be rounded up to the nearest 2 decimal pointsKepompong Corporation is a fan manufacturer. Kepompong produces two types of fan model: Hups and Spree. Estimated cost data regarding two models are as follows: Hups Spree Direct material per unit RM31 RM17 Direct labour cost per hour RM12 RM12 Direct labour hour per unit 1.5 1.25 Annual production(units) 9,800 22,000 The overhead cost is currently absorbed by direct labour hour. Management has designed an Activity Based Costing (ABC) system with the following activity cost pools, activity measure, overhead cost and its level of activity. Overhead Level of Activity Activity Cost Pools Activity Measure Cost (RM) Hups Spree Machine Set-ups Number of set-up 171,600 80 180 Machine Processing Machine hour 30,750 1.150 2.600 Production Order Number of order 73,000 70 130 General Factory Direct labour hour 105,500 14,700 27,500 Required: i. By showing relevant workings, compute the total product cost using traditional and ABC systems for Hups model. (14 marks) Based on the answer in part a) i., explain the different results derived from both costing methods. (4 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started