components: Product W X Y Estimated production volume, 10,000 units 15,000 units 18,000 units Direct-material cost per unit $50 $40 $35 Direct labor cost per unit $30 $35 $30 The total number of activities for each of the three products for the period is as follows: W X Y Number of purchase requisitions 1,200 1,800 2,000 Number of set-ups 240 260 300 Overhead costs have been analysed as follows: Receiving/inspecting quality assurance $1,400, 000 Production scheduling/machine set-up $1,200, 000 Using the activity based costing system, answer the following: iii. The total receiving/inspecting quality assurance cost assigned to Product W is: iv. The total receiving/inspecting quality assurance cost assigned to Product Y is:
components: Product W X Y Estimated production volume, 10,000 units 15,000 units 18,000 units Direct-material cost per unit $50 $40 $35 Direct labor cost per unit $30 $35 $30 The total number of activities for each of the three products for the period is as follows: W X Y Number of purchase requisitions 1,200 1,800 2,000 Number of set-ups 240 260 300 Overhead costs have been analysed as follows: Receiving/inspecting quality assurance $1,400, 000 Production scheduling/machine set-up $1,200, 000 Using the activity based costing system, answer the following: iii. The total receiving/inspecting quality assurance cost assigned to Product W is: iv. The total receiving/inspecting quality assurance cost assigned to Product Y is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
CJD Ltd manufactures plastic components for the car industry. The following budgeted information is available for three of their key plastic components:
Product
W
X
Y
Estimated production volume,
10,000 units
15,000 units
18,000 units
Direct-material cost per unit
$50
$40
$35
Direct labor cost per unit
$30
$35
$30
The total number of activities for each of the three products for the period is as follows:
W
X
Y
Number of purchase requisitions
1,200
1,800
2,000
Number of set-ups
240
260
300
Overhead costs have been analysed as follows:
Receiving/inspecting quality assurance $1,400, 000
Production scheduling/machine set-up $1,200, 000
Using the activity based costing system, answer the following:
iii. The total receiving/inspecting quality assurance cost assigned to Product W is:
iv. The total receiving/inspecting quality assurance cost assigned to Product Y is:
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