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Please help me . please help me . please help me .. please please As a new accountant of the company, you are provided with
Please help me . please help me . please help me .. please please
As a new accountant of the company, you are provided with the following information related to KOKO: Product Koko Annual production and sales unit 5,500 Direct material cost per unit RM50 Direct labour cost per unit RM35 Machine hours per unit 3 hours Selling price per unit RM150 The company is considering of changing the traditional method to the Activity Based Costing (ABC) method. In order to adopt ABC method the following information is required Activity Cost Cost Driver Expected use of Expected overhead Pool drivers per product costs KOKO Other (RM) products Purchasing No of purchase 4,000 3,500 37,500 orders Machining Machine hours 16,500 8,000 147,000 Maintenance Maintenance 3.500 1,500 43,000 hours Quality Number of 1900 1600 17.500 control inspections Total 245,000 Required: a. If the company decided to use the Activity Based Costing (ABC) method, determine the cost per unit of KOKO b. Based on your answer in (a), advise whether the company should change to ABC method. Support your answer with calculationStep by Step Solution
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