Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This question paper comprises of (4) pages only. 1. (a) XYZ Ltd. Produces three products A, B and C for which the standard costs and

image text in transcribed
image text in transcribed
This question paper comprises of (4) pages only. 1. (a) XYZ Ltd. Produces three products A, B and C for which the standard costs and quantities per unit are as follows: (5 Marks) Particulars A B C Output (Units) 10000 20000 30000 Direct material cost per unit R$60 R$ 40 Rs 20 Direct Labour cost per unit (@Rs 40) Rs 40 Rs 80 Rs 120 Machine hours per unit 3 2 1 Number of purchase requisitions 1000 200 300 Number of machine set-ups 150 100 50 Production overhead = P Rs 1400000 Q Rs 2200000 Department P is labour intensive, and Q is machine intensive. Total labour hours in Dept. P = 140000 and Total machine hours in Dept. Q = 100000 Production overhead by activity Receiving and Inspection Rs 1200000 Production scheduling/ set up= Rs 2400000 Prepare statement of cost per unit under traditional absorption method and activity-based costing approaches. Also compare the result of the two methods and give your comments. (b) Why is ABC (activity-based costing) model considered to be superior to the traditional method of costing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Exam Practice Questions Certified Internal Auditor

Authors: The Internal Audit Foundation

1st Edition

163454045X, 978-1634540452

More Books

Students also viewed these Accounting questions

Question

Compare levels of resolution in conflict outcomes?

Answered: 1 week ago

Question

Strategies for Managing Conflict Conflict Outcomes?

Answered: 1 week ago