Question
QUESTION 3 (20 Marks) (24 Minutes) TopDog (Pty) Ltd (TD) is a privately owned South African company that has been manufacturing and selling dog kennels
QUESTION 3 (20 Marks) (24 Minutes) TopDog (Pty) Ltd (TD) is a privately owned South African company that has been manufacturing and selling dog kennels since 1997. The dog kennels are small houses for dogs to sleep in at any time of the day or night. TD manufactures two types of dog kennels, Wooden and Plastic. TD uses Activity-Based-Costing (ABC) for allocating manufacturing overhead costs and has a 31 October year-end. The Budgeted overhead costs for the year ended 31 October 2024 are: R Fixed rental cost 500 000 Other indirect manufacturing costs 1 800 000 Total 2 300 000 Mrs Right, the management accountant, has estimated that the other indirect manufacturing costs will be made up of 30% machining costs, 25% quality control, 25% maintenance, and 20% stores issues costs. Each of these individual indirect manufacturing costs, as well as the fixed rental cost, relates to a separate activity.
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