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Sima manufacturing Ltd has estimated the following activity costs and activity drivers for the current period. Activities Total activity costs Cost driver Total activity level
Sima manufacturing Ltd has estimated the following activity costs and activity drivers for the current period. Activities Total activity costs Cost driver Total activity level Machine set up $184,000 Number of set-ups 800 Materials handling $736,000 Number of material removals 32000 Product design $460,000 Design hours 4000 Inspection $690,000 Number of inspections 15000 Information for a particularjob (job no. T20) completed during the period is as follows: Direct Material $34,500 Direct Labour $13,800 Units Completed 230 Number of setups 9 Number of Material Removals 253 Number of design hours 92 Number of inspections 184 Required: a) Calculate the activity rate for each of the four manufacturing activities. (4 Marks) b) Calculate the total costs forjob T20. (3.5 Marks) c) Calculate the cost per unit for job T20. (2.5 Marks)
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