Activity-based costing system, Managerial Accounting

Assignment Help:

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?


Related Discussions:- Activity-based costing system

Hire purchase and leasing, This is a most familiar form of medium term fina...

This is a most familiar form of medium term financing in obtaining plant and vehicles, machinery etc. In hire purchase transactions, the purchaser of goods will obtain the possessi

Ageing schedule, Ageing Schedule: AS is classifies outstanding accounts r...

Ageing Schedule: AS is classifies outstanding accounts receivable at a specified point of time into various age brackets. A clarifying ageing schedule is specified below.

Bench marking, BENCH MARKING In the current business environment, organ...

BENCH MARKING In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking i

Value analysis-material control, Value analysis Is a formalized techniq...

Value analysis Is a formalized technique involving a rigorous analysis of products at the design stage or at any time during the saleable lives, to determine their value charac

Manufacturing cost, what are the different arguments against direct materia...

what are the different arguments against direct materials, direct labor, and factory overhead

Transient analysis-absorbing state, Transient Analysis A state is said...

Transient Analysis A state is said to be transient if it is impossible to move to that state from any other state except itself. This state is temporary and eventually a stead

Identification of decision packages - zero base budgeting, Identification o...

Identification of decision packages - Zero base budgeting Each manager should break down his decision unit into smaller decision packages. Top manager may lay down the minimum

Why is the activity based costing unaccepable for ex, Ask question #Miwhy i...

Ask question #Miwhy is the activity based costing unaccepable for external financial reportnimum 100 words accepted#

Selective inventory management, Selective Inventory Management The inve...

Selective Inventory Management The inventory of an industrial firm generally comprises thousands of items with diverse prices, usage and lead time, as well as procurement and/o

Inventory planning & control under uncertainty, Inventory planning & contro...

Inventory planning & control under uncertainty The basic EOQ model assumes that all the parameters (elements) in the model are certain (i.e. can be predicted precisely in advan

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd