[Solution]Activity Based Costing

Assessment Task Part: A (Activity Based Costing) (10 Marks) US Bright produces a list of the activities performed at Cravings for cakes and their annual…

Assessment Task Part: A (Activity Based Costing) (10 Marks) US Bright produces a list of the activities performed at Cravings for cakes and their annual costs. In addition, Bright identifies an activity driver for each activity and the annual quantity of each activity driver. A partial list of activity costs and quantities of activity drivers is shown below: Cravings for Cakes list of Activities Activity Activity Cost ($) Activity Driver Annual Quantity of Activity driver Prepare Annual Accounts 5000 None Available Process receivables 15000 No. of Invoices 5000 Invoices Process payables 25000 No. of purchase orders 2500 Purchase orders Program production 28000 No. of production schedules 1000 schedules Process Sales order 40000 No. of sales orders 4000 sales orders Dispatch sales order 30000 No. of dispatches 2500 dispatches Develop and test products 60000 Assigned directly to products Load mixers 14050 No. of batches 1000 batches Operate mixers 45900 No. of kilograms 200000 kilograms Clean mixers 6900 No. of trays 1000 batches Move mixture to filling 3450 No. of cakes/pastries 200 000 kilograms Clean trays 20000 No. of trays 16000 trays Fill trays 16000 No. of cakes/pastries 800,000 cakes/pastries Move to baking 8000 No. of trays 16,000 trays Set up ovens 50000 No. of batches 1000 batches Bake Cakes/Pastries 130000 No. of batches 1000 batches Move to packing 40000 No. of trays 16,000 trays Pack cakes/pastries 80000 No. of cakes/pastries 800,000 cakes/pastries Inspect pastries 2500 No. of pastries 50,000 pastries Required: Construct an Excel spreadsheet to a. Calculate the cost per unit of activity driver for the activities listed (04 Marks) b. Based on the information in the following table, prepare a bill of activities and determine the cost per unit for Lamington (05 Marks) c. What other costs must be added to calculate the product cost for Lamington? (01 Mark) Lamington (Batch Size 1000; Annual Volume 100,000) Activity Consumed Annual Quantity of Activity Driver Process Receivables 500 Invoices Process Payables 200 Purchase Orders Program Production 100 Production Schedules Process Sales Order 400 Sales Orders Load Mixers 100 Batches Operate Mixers 30 000 Kilograms Clean Mixers 100 Batches Move mixture to filling 30 000 Kilograms Clean trays 2000 trays Fill trays 100 000 cakes Move to baking 2000 trays Set up ovens 100 Batches Bake cakes/pastries 100 Batches Move to packing 2000 trays Pack Cakes/Pastries 100 000 cakes Dispatch Sales Order 500 Sales orders Develop and Test product $600 assigned directly to this product
The post Activity Based Costing

Assignment status: Solved by our experts

>>>Click here to get this paper written at the best price. 100% Custom, 0% plagiarism.<<<

Leave a Reply

Your email address will not be published. Required fields are marked *