Rahapuka Ltd is a manufacturing company which manufactures and assembles car components. The following budgeted information relates to Rahapuka Ltd for the forthcoming period. Products A1 B2 C3 '000 '000 '000 Sales and production (units) 50 40 30 N$ N$ N$ Selling price (per unit) 45 95 73 Prime cost (per unit) 32 84 65 Hours Hours Hours Machine department (machine hours per unit) 2 5 4 Assembly department (direct labour hours per unit) 7 3 2 Overheads can be reanalyzed into cost pools as follows: Quantity for Cost pool N$000 Cost driver the period Machining services 357 Machine hours 420 000 Assembly services 318 Direct labour hours 530 000 Set up costs 26 Set up 520 Order processing 156 Customer orders 32 000 Purchasing 84 Suppliers orders 11 200 You have also been provided with the following estimates for the period A1 B2 C3 Number of set ups 120 200 200 Customer orders 8000 8000 16000 Suppliers orders 3000 4000 4000 Required: (A) Prepare and present a profit statement showing the total profit or loss for each of the three products using activity based costing
Rahapuka Ltd is a manufacturing company which manufactures and assembles car components. The following budgeted information relates to Rahapuka Ltd for the forthcoming period. Products A1 B2 C3 '000 '000 '000 Sales and production (units) 50 40 30 N$ N$ N$ Selling price (per unit) 45 95 73 Prime cost (per unit) 32 84 65 Hours Hours Hours Machine department (machine hours per unit) 2 5 4 Assembly department (direct labour hours per unit) 7 3 2 Overheads can be reanalyzed into cost pools as follows: Quantity for Cost pool N$000 Cost driver the period Machining services 357 Machine hours 420 000 Assembly services 318 Direct labour hours 530 000 Set up costs 26 Set up 520 Order processing 156 Customer orders 32 000 Purchasing 84 Suppliers orders 11 200 You have also been provided with the following estimates for the period A1 B2 C3 Number of set ups 120 200 200 Customer orders 8000 8000 16000 Suppliers orders 3000 4000 4000 Required: (A) Prepare and present a profit statement showing the total profit or loss for each of the three products using activity based costing
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...
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Rahapuka Ltd is a manufacturing company which manufactures and assembles car components. The following budgeted information relates to Rahapuka Ltd for the forthcoming period.
Products
| A1 | B2 | C3 | |
| '000 | '000 | '000 | |
| Sales and production (units) | 50 | 40 | 30 |
| N$ | N$ | N$ | |
| Selling price (per unit) | 45 | 95 | 73 |
| Prime cost (per unit) | 32 | 84 | 65 |
| Hours | Hours | Hours | |
| Machine department (machine hours per unit) | 2 | 5 | 4 |
| Assembly department (direct labour hours per unit) | 7 | 3 | 2 |
Overheads can be reanalyzed into cost pools as follows:
Quantity for
| Cost pool | N$000 | Cost driver | the period |
| Machining services | 357 | Machine hours | 420 000 |
| Assembly services | 318 | Direct labour hours | 530 000 |
| Set up costs | 26 | Set up | 520 |
| Order processing | 156 | Customer orders | 32 000 |
| Purchasing | 84 | Suppliers orders | 11 200 |
You have also been provided with the following estimates for the period
| A1 | B2 | C3 | |
| Number of set ups | 120 | 200 | 200 |
| Customer orders | 8000 | 8000 | 16000 |
| Suppliers orders | 3000 | 4000 | 4000 |
Required:
(A) Prepare and present a profit statement showing the total profit or loss for each of the three products using activity based costing
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