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Posted: January 12th, 2021
Activity Based Costing Assignment | Homework For You
Required: Calculations in two decimal places
1)Calculate cost per unit of the two models of sewing machines under the current traditional costing system.
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2)Calculate cost per unit of the two models of sewing machines under Activity based Costing.
3)Sewing easy sells the advance model at a price of total cost (under the current costing system) plus 30% and is willing to give the same selling price to the overseas buyer. The overseas buyer wants to purchase only the advance model. Prepare December 2017 Profit and Loss Statement for the advance model where (a) traditional costing is used to calculate the product cost (b) Activity Based Costing is used to calculate the product cost. Analyse why the overseas buyer is interested to buy only the advance model. In your discussion you should highlight the importance of accurate product costing.
4)Discuss why actual overhead and applied overhead may be different at year end and state three ways to deal with under/over applied overhead costs (no journal entries are required).
5) Assume actual overhead is $300 000 and applied overhead is $210 000 and also assume that at the end of the year the inventory and the cost of goods sold accounts are as follows:
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Work-in-process: $60 500. Accounting homework help
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