Question

5. Kabo (Pty) Ltd makes two following life. Klates to products being X and Y and had that activities. The ē business relating to ee business (6) Activity Cost pool Estimated overhead Lost' Expected Activity Product & Proclud y | Activity I Pso on 800 Activity a P40 000 900 Additional Notes: * no. of units x no. of unit produced for produced for product & is product Y is 1000 12000 per unit if é business uses activity based writing for NB: Regnred calculate the cost is product x

Answer 1

Activity Pool	Estimated Overhead cost	Product X expected activity	Product Y expected activity	Total activity	Unit cost per activity
Activity 1	P 50,000.00	800	600	1400	P 35.71
Activity 2	P 40,000.00	300	500	800	P 50.00

Unit cost per activity = estimated overhead / Total activity

Activity 1 = P 50,000.00 / 1400 = P 35.71

Activity 2 = P 40,000.00 / 800 = P 50.00

Unit cost for Product X

Product X = (800 * 35.71) + (300 * P 50.00) = P 28,568.00 + P 15,000.00 = P 43,568.00

Total unit of product X = 10,000

Unit price = P 43,568.00 /10,000 = P 4.36

Unit cost for product Y

Product Y = (600 * P 35.71) *( 500 * P 50.00) = P 21,426 + P 25,000.00 = P 46,426.00

Total units of Product Y = 12000

Unit price = P 46,426.00 / 12000 = P 3.87