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BPP revision – 4 Triple (Pilot Paper) pg 5-6

Forums › ACCA Forums › ACCA PM Performance Management Forums › BPP revision – 4 Triple (Pilot Paper) pg 5-6

  • This topic has 2 replies, 2 voices, and was last updated 10 years ago by BB.
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  • April 13, 2014 at 12:55 pm #165193
    BB
    Member
    • Topics: 9
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    Hi,

    Please explain for

    (c) Summary
    Set-ups Material Movements Inspections
    Product D 100 16 200
    C 92 17 144
    P 69 12 96

    Why set-ups, material movements & inspections for each products showed the figures as 100, 16 & 200?

    Thanks for your help.

    April 13, 2014 at 1:10 pm #165195
    faizi95
    Participant
    • Topics: 12
    • Replies: 36
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    These are material movements and all other setups etc are given in per product . so these will be used to charge oh per product after finding overhead per activity and then multiply by the 100 for product D 92 for C and 69 for P

    Example : Suppose:

    Overheads for D : $63200
    cost driver in total : 100+16+200=316
    Overhead per unit: 63200/316 = $200

    Material movement=100*$200=$20000
    setup=16*$200=$3200
    Inspection=200*$200=$40000

    Total=20000+40000+3200=$63200

    April 15, 2014 at 8:37 am #165326
    BB
    Member
    • Topics: 9
    • Replies: 4
    • ☆

    Thanks for your answer. May I know how to get the 100 set ups, 16 material movements & 200 inspections for product D?

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