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Please Help….ABC Question

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 10 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 25, 2016 at 4:21 pm #297855
    AvatarGamar
    Member
    • Topics: 4
    • Replies: 3
    • ☆

    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 orders

    There 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 #297865
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    This 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.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Please Help….ABC Question’ is closed to new replies.

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