Question
The budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Budgeted Overheads (RM) Material procurement 580,000 Material handling 250,000 Set-up 415,000
The budgeted overheads and cost driver volumes of XYZ are as follows.
Cost Pool | Budgeted Overheads (RM) |
|
|
Material procurement | 580,000 |
Material handling | 250,000 |
Set-up | 415,000 |
Maintenance | 970,000 |
Quality control | 176,000 |
Machinery | 720,000 |
Cost Driver | Budgeted Volume |
No. of orders | 1,100 |
No of movements | 680 |
No. of set ups | 520 |
Maintenance hours | 8,400 |
No. of inspection | 900 |
No, of machine hours | 24,000 |
The company has produced a batch of 2,600 components of A.X-1S, its material cost was RM 130,000 and labour cost RM 245,000.
The usage activities of the said batch are as follows.
Material orders is 26. Maintenance hours is 690. Material movements is 18. Inspection is 28.
Set ups is 25. Machine hours 1,800
A) Calculate the cost of batch of components using Activity Based Costing.
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