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Plasma Company has provided the following data from its activity-based costing (ABC) system: 1. The cost driver rate for Assembly is closest to: (a) RM15.88/machine
Plasma Company has provided the following data from its activity-based costing (ABC) system:
1. The cost driver rate for Assembly is closest to:
(a) RM15.88/machine hour
(b) RM47/order
(c) RM25.25/machine hour
(d) RM22.30/order
2.The ABC cost for Inspection is closest to:
(a) RM119,535
(b) RM11,274
(c) RM2,452
(d) RM4,525
3. According to the ABC system, the product margin for product XY is:
(a) RM22,950.00
(b) RM5,401.60
(c) RM7,853.60
(d) RM9,223.20
Activity Cost Pool Assembly Processing Orders Inspection Total Cost (RM) 698,720 90,763 119,535 Total Activity 44,000 machine hours 1,900 orders 1,950 inspection hours The company makes 340 units of product XY a year, requiring a total of 710 machine-hours, 80 orders, and 40 inspection-hours per year. The product's direct materials cost is RM40.05 per unit and its direct labor cost is RM14.35 per unit. The product sells for RM121.90 per unitStep by Step Solution
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