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P17-SA plantulide overhead race baedCAS Estimated OH allocation Famly Style Extr

ID: 2337338 • Letter: P

Question

P17-SA plantulide overhead race baedCAS Estimated OH allocation Famly Style Extra Rine Family Style Style self check Calovlane Tocal Cost per Case using ACTIVITY BASED COSTING ACIVITY BASED COSTING RATES Cost Pools Total OH Cost (5 Cost Driver Activity Rate OH Cost/Cont Deiver Wiing&Cooking COST DOLLARS but DO NOT ADD COST DAIVER TOGETHER Machine Calbrstion Labeling&Delects eipe Formulation aterals Mandling Heat, lights and water Apply OH Extra Fine Family Style Maing&Coolking Machine Calbration abeling&Delects odut Testing acipe Formulation aterals Manding No of units produced Tatal OH COST PER CASE TOTAL Cost per case: Extra Fine Family Style Dir Muterais&Labor Cost per case Total cost PER CASE Celadae gross profit per case using ABC-dacuss Extra Fine Family Style alas Price prase Cost per Gross Proft per case

Explanation / Answer

(1) Estimated Overhead / Total no of cases produced

                           = (128250 + 268000 + 182000) / 120000 cases = $4.82

(2)

Extra Fine

Family Salsa

Direct Material & Direct Labour

6

5

Overhead

4.82

4.82

Total cost per unit

10.82

9.82

(3)

Extra Fine

Family Salsa

Market Price

18

9

Total cost per unit

10.82

9.82

Gross Profit(Loss) per unit

7.18

(0.82)

(4)

Extra Fine

Family Salsa

Direct Material & Direct Labour   (A)

6

5

Overhead assigned :-

Mixing, Cooking & Heat lights water

(4500 + 11250 + 27000)/1500 MH = 28.5

(500 * 28.5)

=14250

(1000 * 28.5)

=28500

Product Testing

(112500/600 batches) = 187.5

(187.5 * 200)

=37500

(187.5 * 400)

=75000

Machine Calibration

(250000/400 runs) = 625

(625 * 200)

=125000

(625 * 200)

=125000

Labelling & Defects

(12000 + 6000) / 120000 cases = 0.15

(0.15 * 20000 cases)

=3000

(0.15 * 100000 cases)

=15000

Reciepie Formulation

(90000/45 groups) = 2000

(30 group * 2000)

=60000

(15 group * 2000)

=30000

Material Handling

(65000/8 container) = 8125

(8125 * 5 container)

=40625

(8125 * 3 container)

=24375

Total Overhead assigned

280375

297875

O/H per unit   (B)

(280375/20000)

=14.02

(297875/100000)

=2.98

Total Cost per Unit   (A + B)

20.02

7.98

(5)

Extra Fine

Family Salsa

Market Price

18

9

Total cost per unit

20.02

7.98

Gross Profit(Loss) per unit

(2.02)

1.02

Extra Fine

Family Salsa

Direct Material & Direct Labour

6

5

Overhead

4.82

4.82

Total cost per unit

10.82

9.82