Management Accounting and Finance

Dear Team

I have uploaded a question paper again and hope it will be more clearer now.

Data per manufactured unit is given on a second slide. There are 3 slides uploaded pertaining to one question.

Thanks

Question 2 ABC Ltd. has a single manufacturing process of which the flowing overhead cost estimates eve for the period ending 31 December 20X2 R Raw mas receiving and inspection or 18720 Edy 23400 Materials handing cow 16380 Tota 58500 Three products, namely A, B and Care manufactured by labourers. The raw material anves in bundos and in the processed further ting edincare which te operated by hand. The labourers Wedswage of R50 per hour. The following estimates respicable for the period ending 31 December 2012 Product Product B Product Units manufactured 2 200 1650 880 Raw material received a bundes) 11.00 6,00 18.00 Data per manufactured unit: Direct material (m2) 4,00 6.00 3.00 6,50 Direct material (R) 3.90 7.80 24.00 40.00 60.00 Direct labour minutes of drilling) 7.00 4.00 3.00 Number of electric drilling jobs Overheads are current located to products by means of a rate based on labour hours An activity based investigation identified the following cost drivers Activity cost pool Cost drivers Material receiving and inspection Number of material bundes Electricity Number of drilling jobs Material handling m2 handled (8 marks) Round off all your figures to two decimal places. 2.1 Prepare a summary for the budgeted product cost per unit for each product (A, B and C) for the period ending 31 December 20X2, where the unit cost for each of the cost elements is set out In terms of the current method of overhead allocation 2.2 (12 marks) Prepare a summary for the budgeted product cost per unit for each product (A, B and C) for the period ending 31 December 20X2, where the unit cost for each of the cost elements is set out by using the identified cost drivers and on the basis of ABC principles 21:04 QUESTIONS PDF - 321 KB Question 2 ABC has a single and process when the engine terme period ondag 31 December 2012 R Rawling and inspections 18720 Electro 23430 Material handing on 1530 Total S8500 Three product namely A Sand Caractured by the main bonde in the production, which red by and The The following status we applicable for the pod ending 31 December 200 Product Produc (Jnity mruthun 880 19.00 Duta per matutundunt Director 300 Dieder 7.90 Director 24.00 60.00 Number of electric drilling 7.00 2.00 Overheads are currently located to products by means of te based on how An activity and investigation defied before cate 21:05 QUESTIONS PDF - 321 KB ACCOWEGO. Activity cost pool Cost Materialning and rection Nurbert Enly Number of Matering Ind handed Round of wil you first 21 Prepare a summary for the budgeted product cat per un for each produd and for the markal period ending 31 December 2012 where the foreach of the contents In terms of the current the overade 23 Prepare a summary for the budgeted pesuct cat per un for each product A.Bud Clothe markal period ending December 2010, where the unit Coutorach of the country Weing the dentified codriver and on the basis of ABC prophe Question 2 ABC Ltd. has a single manufacturing process of which the following overhead cost estimates are available for the period ending 31 December 20X2: R Raw materials receiving and inspection cost 18 720 Electricity 23 400 Materials handling cost 16 380 Total 58 500 Three products, namely A, B and C, are manufactured by labourers. The raw material arrives in bundles and is then processed further using electrical drills, which are operated by hand. The labourers are paid a wage of R50 per hour. The following estimates are applicable for the period ending 31 December 20X2: Product A Product B Product C Units manufactured 2 200 1 650 880 Raw material received (total bundles) 11,00 6,00 18,00 Data per manufactured unit: Direct material (m2) 4,00 6,00 3,00 Direct material (R) 6,50 3,90 7,80 Direct labour (minutes of drilling) 24,00 40,00 60,00 Number of electric drilling jobs 7,00 4,00 3,00 Overheads are currently allocated to products by means of a rate based on labour hours. An activity-based investigation identified the following cost drivers: Activity cost pool Cost drivers Material receiving and inspection Number of material bundles Electricity Number of drilling jobs Material handling m2 handled (8 marks) Round off all your figures to two decimal places. 2.1 Prepare a summary for the budgeted product cost per unit for each product (A, B and C) for the period ending 31 December 20X2, where the unit cost for each of the cost elements is set out: In terms of the current method of overhead allocation 2.2 Prepare a summary for the budgeted product cost per unit for each product (A, B and C) for the (12 marks) period ending 31 December 20x2, where the unit cost for each of the cost elements is set out by using the identified cost drivers and on the basis of ABC principles