Question 2: (40 marks) Company Delta manufactures four products which involve ordering materials, setting up machinery and handling activities. The total indirect costs of cach of these activities are as follows. Other information relating to the products is as follows: Predubber of ember of descanding hours 100 Y 2.000 140 2 w 10 Required: i. Prepare a schedule table showing the cost of each activity for each of ordering, handling, and set-up.(9 marks) 2. Fill in the blank in the following table & calculate the indirect cost/unit to be allocated to cach of the four products (total 21 marks - 28 items &.75 marks for each item in the table) Total condering Costedet Tal cup Total handling Godt Nuncher of Indirect Cost per No need 3-Discuss two advantages & 2 disadvantages of using the ABC technique. (10 marks) Question 2: (40 marks) Company Delta manufactures four products which involve ordering materials, setting up machinery and handling activities. The total indirect costs of each of these activities are as follows. Handling,000 Orderide.000 Set-up 60,000 Total 180.000 Other information relating to the products is as follows: Prodblember of ilmber of onderstanding hours 100 600 140 2,500 500140 3000 200 1.000 X Y 2 w 3.600 6,000 30 10 60 Required: 1. Prepare a schedule/table showing the cost of each activity for each of ordering, handling, and set-up:( 9 marks) 2. Fill in the blank in the following table & calculate the indirect cost/unit to be allocated to each of the four products (total 21 marks - 28 items &.75 marks for each item in the table). X KW) Totaldering Cost product Total Set-up product Total handling cost product Total Number of Indirect Cost per No need to Fall here No need to Fill here Other information relating to the products is as follows: Prodamber of ber of onde-odling hours X 1.000 100 Y 2.800 60 2 3.600 30 3000 w 10 2000 Required: 1. Prepare a schedule/table showing the cost of each activity for each of ordering, handling, and set-up (9 marks) 2. Fill in the blank in the following table & calculate the indirect cost/unit to be allocated to each of the four products (total 21 marks - 28 items &.75 marks for each item in the table) XIsmals Total codering Cost product Total Set-up cost product Total handling cost product Number of Ne nood to Fill here No need to Filler Indirect 3-Discuss two advantages & 2 disadvantages of using the ABC technique. (10 marks) Question 2: (40 marks) Company Delta manufactures four products which involve ordering materials, setting up machinery and handling activities. The total indirect costs of each of these activities are as follows. Handli99.000 Orderib9,000 Set-up 60,000 Total 180,000 Other information relating to the products is as follows: Produkilsmber of utilember of ordees-ipandling hours 600 140 X Y Z w 1.000 2,800 3,600 6,000 100 60 30 10 500 300 80 60 200 Required: 1. Prepare a schedule/table showing the cost of each activity for each of ordering, handling, and set-up.(9 marks) 2. Fill in the blank in the following table & calculate the indirect cost/unit to be allocated to each of the four products (total 21 marks - 28 items & .75 marks for each item in the table). XXXtal (8) Total ordering Cost/product Total Set-up cost /product Total handling cost/product Total Number of units Indirect Cost per unit No need to Fill here No need to Fill here 3-Discuss two advantages & 2 disadvantages of using the ABC technique. (10 marks)
