Question
Snart i ml AS manufactures, among other things, the products P1 and P2. To produce the products, the following must be done activities are carried
"Snart i ml AS" manufactures, among other things, the products P1 and P2. To produce the products, the following must be done activities are carried out: materials management, production planning and control, set-up, manufacturing and distribution.
Until now, the company has carried out the calculation on the basis of traditional additional calculation where the indirect costs were added to the products through an additional rate per working hour for direct wages. The additional rate is NOK 350 per time.
Activity location | Cost drives | Distributed costs | Activity frequency per period | Cost per drive unit |
Machine adjustments | Number of lineups | 200 000 | 100 lineups | 2 000 |
Material management | Weight on raw materials | 100 000 | 50 000 kg | 2 |
Environmental control | Focus on chemicals | 50 000 | 10 000 kg | 5 |
Quality control | Number of inspections | 75 000 | 1 000 inspections | 75 |
Administration | Machine hours | 200 000 | 20 000 hours | 10 |
Total indirect costs | 625 000 |
For an order of 1,000 units of one of the products they supply, the following applies:
Machine adjustments | 4 times |
Raw materials | 10,000 kg |
Environmentally hazardous raw material | 2000 kg |
Quality inspections | 10 times |
Machine hours | 500 hours |
Question:
Calculate the activity rates for the individual activity venues
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