Part E
Activity Based Costing
(a)	What are iundicators of problems with product cost systems?
(b)	The 2020 cost pool budget for Mandeep Industries that produces television sets is as follows
	Machine set up related costs			190700
	Engineering related			86200
	Quality Control			142700
				419600
	Budgeted activity levels for 2020
	Direct labour hours			7700
	Quality inspections			8100
	Machine Set-up hours			2850
	Engineering changes			1910
	For a particular production run of 2,200 LED TVs,
	the actiivity levels were as follows:
	Direct labour hours			2100
	Quality inspections			2200
	Machine Set-up hours			520
	Engineering changes			200
	Calculate the overhead cost of one TV set using ABC to apply overheads.

Documenti Microsoft Word Table Tools References Mailings Review View Design Layout 215 she x x AaBbced AaBbccdd AaBbcc AaBbcc Aal 1 No Spacing Heading 1 Heading 2 1 Normal Title Font Paragraph Styles Departmental Overheads (6) The following is the departmental overhead budget of Monica Fashions Service departments are alocated to productive departments using @ Required: Establish the overhead recovery rate for each deptment Service Stores Repairs Prouction Cutting Machining Finishing Total 15310 10210 39020 39-460 28300 Department information DL hour Machine HE Store Use Repairs use 2000 27300 40% 10 20% 30 30 Part E Activity Base Costing $ Documenti Microsoft Word Table Tools References Mailings Review View Design Layout 215 she x x AaBbced AaBbccdd AaBbcc AaBbcc Aal 1 No Spacing Heading 1 Heading 2 1 Normal Title Font Paragraph Styles Departmental Overheads (6) The following is the departmental overhead budget of Monica Fashions Service departments are alocated to productive departments using @ Required: Establish the overhead recovery rate for each deptment Service Stores Repairs Prouction Cutting Machining Finishing Total 15310 10210 39020 39-460 28300 Department information DL hour Machine HE Store Use Repairs use 2000 27300 40% 10 20% 30 30 Part E Activity Base Costing $