Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need the explanation too. tq QUESTION 2: ZEETEX SYSTEMS Zeetex Systems produces two (2) different products. Product A, which sells for RM120 per unit,
i need the explanation too. tq
QUESTION 2: ZEETEX SYSTEMS Zeetex Systems produces two (2) different products. Product A, which sells for RM120 per unit, and Product B, which sells for RM180 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver, Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. Zeetex manufactures 10,000 units of Product A and 7,500 units of Product B per month. Each unit of Product A uses RM50 of direct materials and RM20 of direct labour, while each unit of Product Buses RM75 of direct materials and RM35 of direct labour. Selling price per unit (RM) Direct materials per unit (RM) Direct labours per unit (RM) Manufactures or volume (units) Product A 120.00 50.00 20.00 10,000 Product B 180.00 75.00 35.00 7,500 The cost of each activity and usage of the activity drivers are as follows: Total Usage Usage by Product A Activity pool Design Machining Inspection Total Cost Cost or Activity Driver Engineering Hours Machine Hours No. of batches 200 Total Cost (RM) 150,000 500,000 30,000 680,000 Usage by Product B 300 3,000 15 1,000 45 500 4,000 60 Required: (a) Calculate the or overhead absorption rate or activity rate (CAR) for Design, Machining and Inspection. (3 Marks) (1) Determine the total manufacturing overhead assigned to Product A and Product B. (4 Marks) id Determine the manufacturing cost per unit for Product A and Product B. (4 Marks) (d) Determine the profit per unit for Product A and Product B. (2 Marks) le) Determine the total profit for Product A and B. (2 Marks) 19 Give THREE (3) reasons why companies use ABC costing rather than traditional costing systemStep 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