Q.1.a. Calculate the indirect costs per unit of the different cost drivers.

Q.1.b. Calculate the unit costs of the Order A when applying the Activity Based Costing method.

Also, the next information is available to make the cost price calculation according to the Activity Based Costing method. Activity Cost Driver Forecast Indirect Costs Consumption Consumption per unit of the per unit of the cost driver cost driver ORDER A ORDER B 900 900 60,000 Material Handling Number of fitted components Number of Adjustments Q1 EXERCISE FINANCE ACTIVITY BASED COSTING. (15p) The company Cost & Dail Ltd., located in the Spain, manufactures all kind of components for the construction of different types of push back trucks. Cost & Dail- components are used within pushback trucks operating on different airports within the region such as DXB, DWC and AUH. The company uses the Activity Based Costing method to calculate the cost price for the different orders they need to produce. For the year 2020, two orders will be executed: Order A and Order B. For those orders, the following applies: Order A Order B Direct material 25,000 36,000 costs Direct labour costs 9,000 20,000 Number of direct man hours 190 200 Total indirect costs 315,000 80,000 12,000 11,000 120,000 400 500 Lathe (Nederlands: Frees) Milling Machine (Nederlands: Draaibank) Logistics Handling Number of Machine Hours 55,000 7 8 Number of Orders 315,000 Co to navt nana