Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me i will give good rating (Use Excel) it will be very helpful please Question 2 MASKERS produces two types of facial mask:
Please help me i will give good rating (Use Excel) it will be very helpful please
Question 2 MASKERS produces two types of facial mask: DUA-PLY" and "TIGA-PLY" whereby the factory is expected to produce 8.000 units of DUA-PLY and 10,000 units of TIGA-PLY to cater for sports tournaments. The total direct material cost for DUA-PLY is expected to be RM300,000 and RM200,000 for TIGA-PLY. The factory is also expected to pay a total wage of RM250,000 for DUA-PLY and RM150,000 for TIGA-PLY. Other manufacturing cost is considered as overhead. The annual estimated overhead for the year was 500,000. Currently, the factory allocates its overhead on the basis of machine hours whereby DUA-PLY requires 5 machine hours per unit and TIGA- PLY requires 6 machine hours per unit. The company is considering the use of the activity based costing (ABC) to allocate all of its overhead based on the following information: Overhead Cost Driver DUA-PLY TIGA-PLY Total Costs (RM) 150,000 Direct Material Cost Number of inspections 6 200,000 4 Indirect Material Quality Control Depreciation of Factory Machineries Indirect Labour 50,000 Machine Hours (MH) 40,000 MH 60,000 MH 100,000 Direct Labour Hours 45,000 35,000 Required to: a. Calculate the total cost and cost per unit of each product using the traditional costing system. Show all workings . b. Calculate the total cost and cost per unit of each product using the activity-based costing system. Show all workingsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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