As a new accountant of the company, you are provided with the following information related to KOKO.: Product Annual production and sales unit Direct material cost per unit Direct labour cost per unit Machine hours per unit Selling price per unit Koko 5,500 RM50 RM35 3 hours RM150 The company is considering of changing the traditional method to the Activity Based Costing (ABC) method. In order to adopt ABC method the following information is required Activity Cost Cost Driver Pool Expected overhead Expected use of drivers per product Other products 3,500 costs коко (RM) No of purchase orders Machine hours Maintenance Maintenance hours Number of | inspections Total Purchasing 4,000 37,500 Machining 16,500 8,000 1,500 147,000 3,500 43,000 Quality 1900 1600 17,500 control 245,000 Required: If the company decided to use the Activity Based Costing (ABC) method, determine the cost per unit of KOKO. a.

As a new accountant of the company, you are provided with the following information related to KOKO.: Product Annual production and sales unit Direct material cost per unit Direct labour cost per unit Machine hours per unit Selling price per unit Koko 5,500 RM50 RM35 3 hours RM150 The company is considering of changing the traditional method to the Activity Based Costing (ABC) method. In order to adopt ABC method the following information is required Activity Cost Cost Driver Pool Expected overhead Expected use of drivers per product Other products 3,500 costs коко (RM) No of purchase orders Machine hours Maintenance Maintenance hours Number of | inspections Total Purchasing 4,000 37,500 Machining 16,500 8,000 1,500 147,000 3,500 43,000 Quality 1900 1600 17,500 control 245,000 Required: If the company decided to use the Activity Based Costing (ABC) method, determine the cost per unit of KOKO. a.

Name: As a new accountant of the company, you are provided with the followi
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Description: As a new accountant of the company, you are provided with the following informationrelated to KOKO:ProductAnnual production and sales unitDirect material cost per unitDirect labour cost per unitMachine hours per unitSelling price per unitKoko5,500RM

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter1: Introduction To Cost Management

Section: Chapter Questions

Problem 1E: Classify each of the following actions as either being associated with the financial accounting...

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