Solution-Calculate the cost driver rates for each activity

Calculate the cost driver rates for each activity

Assignment Help Managerial Accounting

Reference no: EM133162723

Question - Mercury Ltd produces two products with details below:

	Glopp	Gash
Production (units)	10,000	5,000
Batch size	100	20
Set ups per batch	3	1
Special parts per unit	1	4
Purchases per year	200	300

Activity	Cost pool £	Cost Driver
Set ups	27,500	Number of set ups per batch
Special parts handling	30,000	Number of special parts per unit
Purchase order	5,000	Number of orders per year

Required -

1. How are direct costs different to indirect costs? Give examples.

2. Calculate the cost driver rates for each activity.

3. How much overhead would be attributed to a unit of Glopp?

4. Compare the usage of Traditional Absorption costing with Activity Based costing.

5. Discuss how budgeting could be applied to ABC costing.

Reference no: EM133162723

Questions Cloud

Data on exiting employees : Read the following memo from the CHRO (Chief HR Officer) and then decide how you want to proceed. Write a proposal as a memo to the CHRO.

What is most appropriate method to calculate payback period : What is the most appropriate method to calculate the payback period for replacement a plant for energy saving purpose

Organization vision-mission and values statements : State the organization's vision, mission, and values statements. Discuss whether the organization's purpose and priorities are clearly defined.

What specific functions should an hr unit carry out : The Abico Wine Bar is a chain of twelve wine bars located across Ontario including its flagship unit located in the heart of beautiful Prince Edward County, Ont

Calculate the cost driver rates for each activity : Mercury Ltd produces two products with details - How are direct costs different to indirect costs? Give examples. Calculate cost driver rates for each activity

Constantly generate losses versus the notion : Discuss the notion that firms should stop doing business with customers who constantly generate losses versus the notion that the customer is always right

Samples of a budget narrative formats : Question: What efforts, if any , does your agency or an agency you are interested in make to raise funds from the community foundations, or state and federal ag

Build the self-efficacy of an hr manager : What are the Learning objectives when developing a program to build the Self-Efficacy of an HR Manager.

Prepare the pdc company projected income statement : PDC's sales are projected to be $80,000 in September 2014. Prepare the PDC Company's projected income statement for August

User Account

All Pages

Calculate the cost driver rates for each activity

Reference no: EM133162723

Reference no: EM133162723

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT