SKMM4823 20192020 SEM2 Q2 PDF

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Warning: TT: undefined function: 32QUESTION 2Labor Working HourMachine HourMaterials Cost (RM)(Per Unit Product )(Per Unit Product)( Per Unit Product)a 100 5 400 3 5 4 25 80e 250 2 2000 5 3 8 10 80i 300 2 2400 5 4 8 12 80o 50 10 500 3 5 10 50 120u 100 5 500 4 3 5 25 1205800 20 20 480ActivityOverhead...

Description

QUESTION 2

Labor Working Hour

Product

Unit Product

(Per Unit Product )

Machine Hour total machine No of Setup hour

No of Moves

(Per Unit Product)

Materials Cost (RM)

( Per Unit Product)

Administra tive hours

a

100

5

400

3

5

4

25

80

e o

250 300 50

2 2.5 10

2000 2400 500

5 5 3

3 4 5

8 8 10

10 12.5 50

80 80 120

u

100

5

500

4

3

5

25

120

i

5800 Activity

Overhead Cost Driver Cost (RM)

Material Handling

3000 No. of Move

Setup

2000 No. of Setup

Machine Maintenance

15000 Machine Hour

20000

20

20

480

labor cost

5

a

e

i

o

u

Direct Labour

2,500

2,500

3,750

2,500

2,500

Material Cost

2,500

2,500

3,750

2,500

2,500

Traditional Method

1 mark

Indirect Cost (Machine Hours) 5800 hour

OAR

5,000

3.448276 rm/hour

Total Overhead 20000 rm

Tradition a e i o u al Direct 5,000 5,000 7,500 5,000 5,000 Cost (RM) Total Machine 400 2000 2400 500 500 Hours Indirect 1379.31 6896.552 8275.862 1724.138 1724.138 Cost (RM) Total 6379.31 11896.55 15775.86 6724.138 6724.138 Cost (RM) Cost per 63.7931 47.58621 52.58621 134.4828 67.24138 Unit (RM)

1 mark

1 mark

1 mark

1 mark

Price Per Unit (3xcost/u nit) (RM)

191.3793 142.7586 157.7586 403.4483 201.7241 1 mark 5 marks (1 each)

5,000

7,500

5,000

5,000

1 mark 2 marks (1 each)

ACTIVITY BASED COSTING Material Handling Setup Machine Maintenance

ABC

150 1 mark 100 1 mark

 

Material Handling Setup = Overhead Cost/ Total no of setup = 20 000/16 = RM 1250/setup

2.5862069 1 mark 0 3 marks



Machine Maintenance = overhead cost/machine hour = 100 000/5 000 = RM 20/machine hour



Salaries of admin = 48000/480 = RM 100/hour

a

e

i

o

u

750

450

600

750

450

300

500

500

300

400

Indirect Cost Material Handling Setup Machine Maintenance Admin Salary

1034.48276 5172.414 6206.89655 0

0

1293.1034 1293.1034

0

0

Total Indirect 2084.48276 6122.414 7306.89655 Cost Direct Cost (RM) 5,000 5,000 7,500 Total Cost

7,084

11,122

Cost Per Product 70.8448276 44.48966 49.3563218 Price Per Product 212.534483 133.469 148.068966

0

1 mark

0

2343.1034 2143.1034

14,807

1 mark 1 mark

5,000

5,000

7,343

7,143

146.86207 71.431034 440.58621 214.2931

1 mark

1 mark 1 mark 6 marks

tween Traditional and ABC method for each product (ABC- TRADITIONAL) / TRADITIONAL X 100% ABC % DIFF

a 11.05%

e -6.51%

i -6.14%

o 9.21%

u 6.23%

Advantage * Per unit cost is more accurate. * More overhead can be link directly to each product. * Charged cost to activity that causes the cost to occur. * Identify the real characteristics of a cost and help reduce non value added activity. * Suitable for making long term decisions because long term variable cost can be analysed more accurately. * Can identify processing cost, customer cost and other management cost. Disadvantage * Need more multi cost pool and cost drivers. * More complicated and may increase management cost. * May not be suitable for small companies or companies that determine its product cost based on market price. * Problem of joint cost, selection of cost drivers and non-linear cost drivers....