Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Please Help….ABC Question
- This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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- January 25, 2016 at 4:21 pm #297855
Hello Sir,
Please help me on the below ABC question….
Product P Product Q Product R
1) Production & Sales P 3000 units Q 2000 units R 1500 units
2)Direct Production Costs $per unit $ per unit $ per unit
Direct Materials P 12 Q 11 R 8
Direct Labour P 3 Q 6 R 2
TOTAL P 15 Q 17 R 10
3) Labour hours per unit P 1/2 Q 1 R 1/3
4) Machine hours per unit P 2 Q 1 R 2
5) Number of production runs P 8 Q 2 R 10
6) Number of deliveries to P 3 Q 2 R 10
customers
7)Number of production orders P 30 Q 5 R 15
8)Number of deliveries of P 17 Q 3 R 20
materials in store
9)Production overhead costs
Machining
Set up costs
Materials handling receiving
Packing costs despatch
Engineering
Indirect Production overheads that are not driven by production volume are:
Item Cost Driver
Set Costs Production runs
Materials Handling Deliveries of materials
Packing Deliveries to customers
Engineering Production ordersThere was no opening inventories at the beginning of june.
What would be the full production cost of product R if materials handling overhead were absorbed on the basis of direct material cost & all other overheads were absorbed on machine hour basis?Appreciating your help…Thank You
January 25, 2016 at 4:47 pm #297865This forum is not for simply setting test questions and expecting an answer. You must have an answer in whichever book you found the question, and you should ask about whatever part of the answer you do not understand.
Our free lectures on activity based costing cover everything you need to be able to answer this question – it is actually a very easy one.
(Our free lectures cover everything needed to be able to pass Paper F5 well)Anyway, you have not typed out the full question and so it is impossible! You cannot do it without knowing the total of each of the production overheads, and you have not typed them.
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