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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 699000Total Material cut 30000
Total pairs of shoes produced 50000Cost drivers rates:
Cutting :Metres of material Cut
Sewing and finishing: Pairs of shoes completed
Packing: Pairs of shoes completedSTYLE 1
Total of material used 2.0 metres
Labour (Cutting): 85 mins
Labour (Sewing): 40 mins
Labour (Packing): 15 minsSTYLE 2
Total of material used 1.2 metres
Labour (Cutting): 70 mins
Labour (Sewing): 55 mins
Labour (Packing): 15 minsSTYLE 3
Total of material used 1.05 metres
Labour (Cutting): 45 mins
Labour (Sewing): 85 mins
Labour (Packing): 15 minsAfter doing traditional costing I found these figures:
Cutting – 305162.68
Sewing – 243537.56
Packing – 150299.76How would I calculate this?
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