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Pls Answer, this is all that I have on the question :( Kootenay Bike Company uses Activity Based Accounting to account for its bike building
Pls Answer, this is all that I have on the question :(
Kootenay Bike Company uses Activity Based Accounting to account for its bike building process. They have identified four activities that incur manufacturing overhead: Materials Testing Machine Set-up, Assembly, Finishing. The budgeted activity costs are as follows: Activity Budgeted Overhead Cost Allocation Base Materials Testing 75,000 Number of Parts 55,000 Machine Set-up Number of set-ups Assembly 85,000 KGs of aluminum Labour Hours used in Finishing Finishing 125,000 Total 314,000 Kootenay Bike Company expects to use 10,000 parts, have 200 machine set-ups, use 25,000 KGs of aluminum and 20,000 finishing hours X A- " a) Calculate the cost allocation rate for each activity (8 marks) b) Calculate the MOH cost that should be allocated to job #1878, with 500 parts used, 5 machine sets ups, 1,200 KGs of aluminum and 800 hours of direct finishing hours (8 marks) c) Assuming $25,000 worth of Direct Materials and $30,000 in Direct Labour are used in job #1878, calculate the total cost of the job. (4 marks) Kootenay Bike Company expects to use 10,000 parts, have 200 machine set-ups, use 25,000 KGs of aluminum and 20,000 finishing hours 7 X B 1 TE a) Calculate the cost allocation rate for each activity (8 marks) b) Calculate the MOH cost that should be allocated to job #1878, with 500 parts used, 5 machine sets ups, 1,200 KGs of aluminum and 800 hours of direct finishing hours. (8 marks) c) Assuming $25,000 worth of Direct Materials and $30,000 in Direct Labour are used in job #1878, calculate the total cost of the job: (4 marks) d) Assuming 30 bikes are produced in job #1878, what is the total cost per unit? (2 marks) e) Assuming Kootenay Bike Company wants a 45% contribution margin, what is the selling prices of the bikesStep by Step Solution
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