Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve it.tq QUESTION 2 PART A Department X is a division in Bestie Erat and applying activity-based costing. Estimated departmental costs per year are
please solve it.tq
QUESTION 2 PART A Department X is a division in Bestie Erat and applying activity-based costing. Estimated departmental costs per year are RM1,031,500. The majority effort of activity for this department is finding the best supplier which most of the overhead costs are allocated in this activity. All purchase orders are received in a single shipment. Activity Find best suppliers Issue purchase orders Review receiving reports Cost driver Number of telephone calls Number of purchase orders Number of receiving reports Quantity 475,000 56,875 38,125 Overhead costs (RM) 475,250 287,500 268,750 One special order product manufactured by the company required the following Department X activities: Direct materials Direct labour Telephone calls Purchase orders Receipts 1 kilogram at RM2.25 per gram 5 hours at RM65 per hour 230 60 25 Required: a) Compute the amount of Department X cost should be assigned to this product. (9 marks) b) If 100 unit of the products are manufactured during the year, compute the Department X cost per unit (1 mark) c) If Department X costs had been allocated using telephone calls as the allocation base, how much cost would have been assigned to this productStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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