Question
Activity-based Costing
Losch Engineering allocates its factory overhead using activity-based costing concepts
Application rates used are:
| Activity | CostDriver | Application rate |
| Set-ups | Numberof set – ups | $ 375 per set-up |
| Assembly | Machine hours | $ 60 per Machine hours |
| Testing | Number of tests | $30 per test |
Detailsof one product, Arkell, in September are:
| Directmaterials | $50,000 |
| Directlabour | $30,000 |
| Factoryoverhead | |
| Set-up | 3 set-ups |
| Assembly | 150 machine hours |
| Testing | 20 tests |
| Unitsproduced | 7,000units |
Required:
Calculate for Arkell in September:
(1) Total manufacturing costs
(2) Arkell- Cost per unit
Providemanagementaccountinginformation
Question
Process Costing :Byford Ltd has the following production results for October:
| Work in process1-October | 7,500 units | 60%complete |
| Startedin October | 117,000 units | |
| Work in process 3l- October | 6,000 units | 80% complete |
Material A is added at the start of the process and Material B is added at the 75% point of completion . Direct labour and factory overhead are incurred uniformly throughout the process.
Required:
Prepare a schedule that shows the physical units and the equivalent completed units for October assuming the FIFO method of inventory valuation is used.
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