Make a table comparing the total product cost assigned

Assignment Help Financial Accounting

Reference no: EM133334549

Problem:

Overhead Rates per Department
- Basic System
Department A = 130 per unit
Department B = 210 per unit

- Advanced System
Department A = 390 per unit
Department B = 100 per unit

Product cost based on Department Overhead Costs
- Basic System = 1,040 per unit
- Advanced System = 1,560 per unit

Revised unit price
- Basic System = 1,144
- Advanced System = 1,716

Using Activity Based Costing, without any additional information. The overhead costs be as follows:

- Basic System = 340 per unit
- Advanced System = 460 per unit

The company has implemented an activity-based costing system for its manufacturing overhead costs with the activity cost pools and activity driver data below.

Activity	Activity Cost ($)	Total	Activity Drivers
			Basic system	Advanced system
Machine set up	100 000	200 setup	50 setup	150 setup
Material receiving	60 000	80 000 kilograms	30 000 kilograms	50 000 kilograms
Inspection	80 000	1600 inspections	700 inspections	900 inspections
Engineering	140 000	7 000 EH	3 000 EH	4 000 EH
Total Overhead	800 000

MH = Machine hours
EH = Engineering hours

Southern Cross plans to produce 1 000 units of each model of fax machine

Question: Make a table comparing the total product cost assigned to each type of fax machine using a plantwide overhead rate, department overhead rates and activity-based costing.

Reference no: EM133334549

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