Product Volume Material cost per unit (R) Direct Labour Cost per unit (R) Machine Time per unit (Hours) Rubber Ball 1 000 5.00 5.50 0.35 Leather Ball 700 20.00 2.00 1.00 Total production Overheads are as follows: Machine department: R50 000 (machine hours is the cost driver) Set‐up costs: R5 000 Ordering Costs‐materials: R2 000 Handling materials: R8 000 An analysis of production overhead activities for the period for the volume of products manufactured revealed the following: Product # set‐ups # material orders # times material were handled Rubber Ball 1 1 2 Leather Ball 2 1 3 Calculate the total budgeted product cost per unit for the Rubber Ball using Activity Based Costing (ABC). Round all answers to two decimal places.

Product Volume Material cost per unit (R) Direct Labour Cost per unit (R) Machine Time per unit (Hours) Rubber Ball 1 000 5.00 5.50 0.35 Leather Ball 700 20.00 2.00 1.00 Total production Overheads are as follows: Machine department: R50 000 (machine hours is the cost driver) Set‐up costs: R5 000 Ordering Costs‐materials: R2 000 Handling materials: R8 000 An analysis of production overhead activities for the period for the volume of products manufactured revealed the following: Product # set‐ups # material orders # times material were handled Rubber Ball 1 1 2 Leather Ball 2 1 3 Calculate the total budgeted product cost per unit for the Rubber Ball using Activity Based Costing (ABC). Round all answers to two decimal places.

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Description: Product Volume Material costper unit (R)Direct LabourCost per unit(R)Machine Timeper unit(Hours)Rubber Ball 1 000 5.00 5.50 0.35Leather Ball 700 20.00 2.00 1.00Total production Overheads are as follows:Machine department: R50 000 (machine hours is th

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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