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PLEASE SOLVE THIS COST ACCOUNTING QUESTION OF ACTIVITY BASED COSTING I HAVE AN EXAM TOMORROW. PLEASE GIVE STEPS FOR EACH STEP AND EXPLANATION AS WELL.
PLEASE SOLVE THIS COST ACCOUNTING QUESTION OF ACTIVITY BASED COSTING I HAVE AN EXAM TOMORROW. PLEASE GIVE STEPS FOR EACH STEP AND EXPLANATION AS WELL. I WILL GIVE THUMBS UP THANKS. PLEASE REFER TO THE QUESTION IN THE IMAGE. Gmplos Cost Driver Information: tableXrays,Ultrasound,CT Scan,MRINumber of procedures,tableMinutes to clean aftereach proceduretableMinutes consumed foreach procedure Allocation Base for the proposed ABC system: tableIndirect Cost Pool,Allocation BaseAdministrationNumber of proceduresMaintenance including partsAmount of Depreciation chargedSanitationTotal cleaning minutesUtilitiesTotal procedure minutes Required: Marks A Calculate the budgeted cost per service using direct technician labour costs as the allocation base. B Calculate the budgeted cost per service if RRC allocated overheads using Activity Based Costing. C Compare and comment on the results obtained from A & B above to gain managerial insights and suggest changes to improve profitability. Explain how product profitability analysis and product mix decisions will be different from the two costing methods.
PLEASE SOLVE THIS COST ACCOUNTING QUESTION OF ACTIVITY BASED COSTING I HAVE AN EXAM TOMORROW. PLEASE GIVE STEPS FOR EACH STEP AND EXPLANATION AS WELL. I WILL GIVE THUMBS UP THANKS. PLEASE REFER TO THE QUESTION IN THE IMAGE.
Gmplos
Cost Driver Information:
tableXrays,Ultrasound,CT Scan,MRINumber of procedures,tableMinutes to clean aftereach proceduretableMinutes consumed foreach procedure
Allocation Base for the proposed ABC system:
tableIndirect Cost Pool,Allocation BaseAdministrationNumber of proceduresMaintenance including partsAmount of Depreciation chargedSanitationTotal cleaning minutesUtilitiesTotal procedure minutes
Required:
Marks
A Calculate the budgeted cost per service using direct technician labour costs as the allocation base.
B Calculate the budgeted cost per service if RRC allocated overheads using Activity Based Costing.
C Compare and comment on the results obtained from A & B above to gain managerial insights and suggest changes to improve profitability. Explain how product profitability analysis and product mix decisions will be different from the two costing methods.
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