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

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April 13, 2014 at 12:55 pm #165193
BB
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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
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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
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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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