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Activity Based-Costing Method | Managerial Accounting Assignment

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Added on  2020-04-01

Activity Based-Costing Method | Managerial Accounting Assignment

   Added on 2020-04-01

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Part CCalculation of number of activities requiredActivity Cost PoolCost driver BudgetedLevel OverheadAmount Costperactivity Number ofActivityRequired Fred MarthaMachine related costsMachine hours9,000450,000504,0005,000Setup and inspectionNumber of production runs40180,0004,5002020EngineeringEngineering change order10090,0009007525Plant related costsSquare footage of space1,92096,000501,536384816,0005,5005,6315,429Calculation of cost per unit for FredParticulars Fred Units or numberof activityrequired Rate perunitTotalDirect Material1,00040$40,000Direct Labour1,00030$30,000Machine related costs4,00050$200,000Setup and inspection204,500$90,000Engineering75900$67,500Plant related costs1,53650$76,800Total Costs$504,300Number of Units$1,000Cost per unit (Total costs / number of units) $504.30 Calculation of cost per unit for MarthaParticulars Martha Units or numberof activityrequired Rate perunitTotalDirect Material5,00060$300,000Direct Labour5,00045$225,000Machine related costs5,00050$250,000Setup and 204,500$90,000
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