Question

V Help Open in Desktop App A Suggested time 45 minutes Answer following questions based on the scenario of 2 Zany Brainy Corp., manufactures two types of tamponerend odery Company produces 10.000 Home sire lamps and 2.000 industry irem Fall data provided about these two products S10 SIS S1600 Direct materials permit Direct manufacturing Labourate per unit Direct les bours per $16.00 0.50 S110.000 200 50 Ser upcom Lamps produced per patch Set up hour per patch Advertising costs Total indirect manufacturing costs Annual production 5150,000 $260.000 10.000 2.000 The company's simple (traditional) costing system uses a single indirect cost pool and allocates costs to the two lamps on the basis of direct manufacturing labour-hours. Under this traditional system, determine total product cost per unit of each of the company's two products. (10 marks)

Answer 1

Cla x 9 Bookl - Microsoft Excel Home Insert Page Layout Formulas Data Review View Σ AutoSum και Calibri - 11 A A Wrap Text General Fill - % Cut E) Copy Paste Format Painter Clipboard B I U *Merge & Center $ - % 4.0 .00 .00 .0 Insert Delete Format Conditional Format Cell Formatting as Table Styles Styles 2 Clear - Sort & Find & Filter - Select Editing Font Alignment Number Cells K18 foc G H 1 j K L M N o P Q R S A B с D E F 1 2 HOME SIZE LAMPS INDUSTRY SIZE LAMPS 3 4. Direct Material Cost 100000 30000 5 (material per unit * no. of units) (10*10000) (15*2000) 6 7 Direct Labour Cost 80000 22400 8 (labour hours * labour rate) 5000 16 1400*16 9 10 Total Indirect Costs 203125 56875 11 [260000"(5000/6400)] [260000*(1400/6400)] 12 13 Total Costs 383125 109275 14 15 cost per unit 38.3125 54.6375 16 (total costs/no.of units) 383125/10000 109275/2000 17 18 Notes: 19 HOME SIZE LAMPS INDUSTRY SIZE LAMPS 20 21 No. of Lamps Produced 10000 22 23 Direct Labour Hours 5000 1400 24 (time per unit * no. of units) (0.5*10000) (0.7*2000) 25 26 27 Total Indirect Costs 260000 28 This is to be allocated in the ratio of total manufacturing labour hours in both the lamps i.e.,5000:1400 29 KN Sheet1 Sheet1 Sheet2 Sheet3 Ready - 2000 BOU 86% O X 10:11 AM 9/23/2020