Question 4135 Barbacoa As Chinese supplier is a traditional manufacturing company that produces and sells two types of barbeque grills, the coal-driven Baconiter and the gas-driven TasteMaster. It is only the latter that is imported to Norway The company has previously used a costing model where indirect production costs have been allocated to the two products with the help of a distribution rate where production time has been defined as the underlying cost driver Their newly employed CFO wants to introduce Activity based costing and has made an analysis of the budgeted indirect production costs for 2022 fall figures in Chinese Yuan Total activity costs Activity 6200 000 Procurement Machinery sep and calibration 400 000 Budgeted capacity Budgeted capacity utilization utilation Bacon Taste Master 1800 1 400 purchase order purchase orders 400 300 production lines production lines 8000 10 400 production production hours houn 240 420 inspection Inspections 0 Viejobs Services NA NA 6400000 3600000 Production Quality inspection Maintenance of equipment Facility costs Total Feed Available costs in capacity 4000 90.00 purchase orders 800 10000 production lines 22000 22.00 production hours 800 inspections 1200 78.00% eros 84.00 NA 1000000 8000000 32 000 000 The direct production costs per unit are as follows: Bacon Taiteer Direct material 53.00 Director 1000 212.00 Packaging 36.00 42.00 Total 192.00 360.00 106.00 The planned production and sales in 2022 i Baconiser: 120 000 units Taste Master: 240 000 units Use the template in the Excel spreadsheet to make an ABC-costing model for one unit of Baconier and one unit of Taste Master, as well as a calculation of the costs for excels capacity in the Production Department Question 4135 Barbacoa As Chinese supplier is a traditional manufacturing company that produces and sells two types of barbeque grills, the coal-driven Baconiter and the gas-driven TasteMaster. It is only the latter that is imported to Norway The company has previously used a costing model where indirect production costs have been allocated to the two products with the help of a distribution rate where production time has been defined as the underlying cost driver Their newly employed CFO wants to introduce Activity based costing and has made an analysis of the budgeted indirect production costs for 2022 fall figures in Chinese Yuan Total activity costs Activity 6200 000 Procurement Machinery sep and calibration 400 000 Budgeted capacity Budgeted capacity utilization utilation Bacon Taste Master 1800 1 400 purchase order purchase orders 400 300 production lines production lines 8000 10 400 production production hours houn 240 420 inspection Inspections 0 Viejobs Services NA NA 6400000 3600000 Production Quality inspection Maintenance of equipment Facility costs Total Feed Available costs in capacity 4000 90.00 purchase orders 800 10000 production lines 22000 22.00 production hours 800 inspections 1200 78.00% eros 84.00 NA 1000000 8000000 32 000 000 The direct production costs per unit are as follows: Bacon Taiteer Direct material 53.00 Director 1000 212.00 Packaging 36.00 42.00 Total 192.00 360.00 106.00 The planned production and sales in 2022 i Baconiser: 120 000 units Taste Master: 240 000 units Use the template in the Excel spreadsheet to make an ABC-costing model for one unit of Baconier and one unit of Taste Master, as well as a calculation of the costs for excels capacity in the Production Department
