Activity-based costing system, Managerial Accounting

The Pinewood Furniture Company Pty Ltd plans to design two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing system. Given below are every activity, its cost and its related activity driver.

Activity                       Cost                       Activity Driver
Material Setups         $300,000               Number of setups
Material handling       $250,000             Number of parts
Cutting                     $700,000             Number of parts
Assembly                 $600,000               Direct labour hours
Finishing                  $450,000                 Number of units


The level of activity for the year is:

                                             Lounge    Patio
Units to be produced               10,000    5,000
Number of Setups                     60         60
Number of parts per unit            10         5
Direct Labour Hours per unit        5          2

Needed:

Under an activity-based costing system, what is the total cost of patio chairs for the annual?

Posted Date: 3/21/2013 2:20:43 AM | Location : United States







Related Discussions:- Activity-based costing system, Assignment Help, Ask Question on Activity-based costing system, Get Answer, Expert's Help, Activity-based costing system Discussions

Write discussion on Activity-based costing system
Your posts are moderated
Related Questions
The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will

ALGEBRAIC ANALYSIS The supposition of linear cost behavior allows use of straight-line graphs and simple linear algebra in cost-volume study. The net cost is a semi-variable c

What are the Principles of management accounting? 1. The procedures and methods to be followed for keeping and analyzing financial statements should have consistency. It enable

interest rates

Change of Technology: Changes in technology commonly leads to improvements in the efficient processing of raw material, reduce in wastages, more speedy production and higher produ

Calculate Transfer Price - Management Control System? Question: Compute the Transfer Price for Product X and Y and the Standard Cost of Product Z as the intra company pricing r

Maximum change in marginal Profit or Cost Just as we did in studying the permissible ranges for changes in resources, we are also interested in studying the permissible ranges


What does it mean when we say consistency is the central feature of economic rationality?

Profitability ratios The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business re