MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost (RM) Total Activity Cleaning 442,068 78,800 hours Job support 52,801 1,900 jobs Client support 9,170 350 clients Other 110,601 Not applicable Total 614,640 The expenses of idle capacity and organization-sustaining expenditures are included in the 'Other' activity cost pool. One particular client, DNO Ltd, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230. TASK: Compute the activity rate for the activity cost pools.
MFCB Ltd uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total Cost (RM) Total Activity Cleaning 442,068 78,800 hours Job support 52,801 1,900 jobs Client support 9,170 350 clients Other 110,601 Not applicable Total 614,640 The expenses of idle capacity and organization-sustaining expenditures are included in the 'Other' activity cost pool. One particular client, DNO Ltd, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230. TASK: Compute the activity rate for the activity cost pools.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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MFCB Ltd uses an activity-based costing system for its
| Activity Cost Pool | Total Cost (RM) | Total Activity |
| Cleaning | 442,068 | 78,800 hours |
| Job support | 52,801 | 1,900 jobs |
| Client support | 9,170 | 350 clients |
| Other | 110,601 | Not applicable |
| Total | 614,640 |
The expenses of idle capacity and organization-sustaining expenditures are included in the 'Other' activity cost pool.
One particular client, DNO Ltd, requested 46 jobs during the year that required a total of 92 hours of housecleaning. For this service, the client was charged RM2,230.
TASK:
Compute the activity rate for the activity cost pools.
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