Reference no: EM132602819
An online sports retailer warehouses various sport equipments and sell the online via web pages. The following are the annual budgeted costs and activity rates of various overheads:-
Warehousing RM2,000,000 @ RM1 per RM1 value of average inventory
Courier RM4,000,000 @ RM30 per kg
Advertising RM5,000,000 @ ?
Website Design RM100,000 @ RM500 per webpage
Purchasing RM 500,000 @ RM5,000 per Purchase Order
Administration RM1,000,000 @ ?
Question a) Group the activities according to unit, batch, product, or facility level cost.
Question b) Badminton rackets weighed a total of 1,000 kg and cost RM200,000. To sell them online requires an average stock holding of RM20,000 inventory at any one time, 20 webpages, and 30 orders. Find the total cost of selling the badminton rackets online.
Question c) Discuss the following statement: "The product costs reported in audited financial statements is not the product cost estimated through ABC"
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