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ABC Costing

SSlLO10y ago
For each style of shoes, recalculate production overheads, and selling prices if ABC costing was used. Data given Indirect Material 82000 Indirect Labour 250000 Rent and Rates 150000 Power 125000 Rental of canteen vending machine 12000 Insurance 45000 Depreciation 35000 Total Overheads 699000 Total Material cut 30000 Total pairs of shoes produced 50000 Cost drivers rates: Cutting :Metres of material Cut Sewing and finishing: Pairs of shoes completed Packing: Pairs of shoes completed STYLE 1 Total of material used 2.0 metres Labour (Cutting): 85 mins Labour (Sewing): 40 mins Labour (Packing): 15 mins STYLE 2 Total of material used 1.2 metres Labour (Cutting): 70 mins Labour (Sewing): 55 mins Labour (Packing): 15 mins STYLE 3 Total of material used 1.05 metres Labour (Cutting): 45 mins Labour (Sewing): 85 mins Labour (Packing): 15 mins After doing traditional costing I found these figures: Cutting - 305162.68 Sewing - 243537.56 Packing - 150299.76 How would I calculate this?
John MoffatJohn MoffatTutor10y ago#1
This forum is not for setting test question and expecting an answer. You must have an answer in whichever book you found the question. This forum is for asking for help in anything you do not understand from our free lectures, or for any specific part of an answer that you are not clear about. You need to watch our free lectures on ABC. Our lectures are a complete course for Paper F5 and cover everything needed to be able to pass the exam well.
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