Question

Hury Peters produces mathematical and eancial calolators Dala related to the bee products follow Cck the icon to vew the addional infomaton data) m(Cick the icon to view the Reqired 1. Compute the manufacturing oveheed cost for each product 2. Compute the mandacturing cest for wach product Reqirement 1. Compute the mandacturing overhead cost per unit for each product sach product Detemine the famla to calolate the ovehead allocated t Product quanthy of alocation b Ohd focted to predt ndirt cnt rale par unit te the nearest cent Now caloulat the toal eead ocated to each product and the overhoad cost per unit (Round the anulachirg evehiad Mathemcal Macing co -X Adshonal antorion Data Se co gedon cos al o a cst Bot products pass throogh Depatmene 1 and Depeent 2 The depatments combinad manufacturing evarhead costs are as folous Mach Financlal Amual prducon n uns 200 000 Dretmat co s0boe s Mandtnoehd co per n Total Dectaacg obe 200200 450 000 Machining ceies Drymandeaung tourhn 60CE 10.00 Sevp cost 120 000 Machie 25 05 peon co 100 c00 umber dopi p ous 300 Pent Done Doe Co o ene une eo nd e dc Check Apsw X

Answer 1

1 Calculate the requirements as follows: В C E G А н Product quantity Product quantity allocation base (Financial) | Activity Activity cost Activity pool Indirect Cost rate allocation base Mathematical overheads Financial 1 (Mathematics) 2 Machining costs 3 Setup costs 4 inspection costs 5 Total 6 No of units 7 Rate per unit 450000 75000 6 25000 150000 50000 300000 120000 200 600 100 60000 100 60000 100000 1000 100 700 70000 300 30000 S585,000 280000 390000 200000 100000 2.8 1.95 Calculations: В E F G Н Product quantity Product quantity Activity cost Activity pool Indirect Cost rate Activity allocation base Mathematical overheads allocation base Financial (Financial) (Mathematics) 25000 2 Machining costs 450000 3 Setup costs 4 inspection costs 100000 5 Total 6 No of units 7 Rate per unit -D2 50000 75000 200 -D2 25000 D3 100 -D4* 700 |-SUM(F2:F4) 100000 - B2/C2 50000 ЕВ3/СЗ -B4/C4 120000 100 300 =D3 * 100 -D4 300 |-SUM(H2:H4) 200000 -Н5/Н6 100 1000 700 $585,000 =F5/F6

2. А В C 1 Direct material costs per unit 2 No of units (B) 3 Direct materials cost (A) 4 Cost per unit (A/B) Financial Mathematical 200000 100000 300000 600000 3 3 5 Direct manufacturing labour costs 6 Mathematical Financial 7 No of units (B) 8 Direct labour costs (A) 9Cost per unit (A/B) 100000 200000 101000 200000 1.01 1 11 Cost per unit Mathematical Financial 12 Direct materials 3 13 Direct labour 1.01 1 14 Manufacturing overheads 15 Total manufacturing cost per unit 16 Total manufacturing cost for each product 2.8 1.95 6.81 5.95 681000 1190000

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