Other
MAC2601
- Course
- Institution
MAC2601 ASSIFNMENT 2 SEMESTER 2
[Show more]
Seller
Follow
mammburundivhuwo
Reviews received
Content preview
MAC2601ASSIGNMENT 2(
ANSWERS
SEMESTER 2
ANSWERS
2022
#631559
, QUESTION 1
INDEPENDENT PART A
Calculate the manufacturing overheads per unit for both Rocky and BMY bikes
using activity-based costing.
Rocky BMY
Machining costs
(2 623 050/375 x 150); (2 623 050/375 x 225) 1 049 220,00 1 573 830,00
Assembling costs
(2 250 000/37 x 7); (2 250 000/37 x 30) 425 675,68 1 824 324,32
Quality inspections
(5 265 000/75 x 15); (5 265 000/75 x 60) 1 053 000,00 4 212 000,00
Stores receiving costs
(2 610 000/1044 x 369); (2 610 000/1044 x 675) 922 500,00 1 687 500,00
Stores issues costs
(3 065 023/1630 x 650); (3 065 023/1630 x 980) 1 222 248,44 1 842 774,56
TOTAL 4 672 644,11 11 140 428,89
Overhead cost per unit
(4 672 644,11/826); (11 140 428,89/2 040) 5 656,95 5 460,99
Explain a difference between the traditional costing and activity-based costing
methods.
Non-manufacturing (ie customer support costs), as well as manufacturing
costs, may be assigned to products for decision-making purposes (not for
GAAP inventory valuation).
A number of overhead activity cost pools are used, each of which is allocated
to products and other cost objects using ABC’s own unique measure of activity
or driver.
The allocation bases differ from those used in the traditional costing method.
The activity rates may be based on the level of activity at normal capacity rather
than on the budgeted level of activity.
INDEPENDENT PART B
© TutorA All rights reserved +27 65 505 3119
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mammburundivhuwo. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.76. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now