wa PARTTWO COSTS AND COSTING SYSTEMS Raw mae wd components se42s000 Bec ght Degen micinery Seca wag ane, ue intone parte Required 1" Rasen tho cost fo the materisrelted machnerylatd, st up. inspection, engineting and facliysutsning action andl caelat tha tote eostaf each tly 2 deni an activ ve ual for ssgnng wach acti cost to product Activity cout and activity drivers: manufacturer Rler ta tho formation provided Exercise 82% For osch ofthe actos dented ndieate whet ‘represents un level batclevl prodveevel or fait Sovel ety. Explain your choice Assigning activity costs to products: manufacturer Busta! id manufactures Bluray players and uses an ctl based product costing system that ae labour and overhead costs. Baw fan incomplete il of activi for the hhlume product BuStondard soldi ofactvten standard ‘nea qu oa ety Cat pei of acy diver ‘rine pros $90 prcn ede 00 pate ts £59750 pr proton dle Seve nc 207 perp 100se09 s2250perselderoint 400 snare Diy sige cet $80 format Standard Soler coor Required "Complete the bl of activites and atnate the tot activity costof the Blustendard player, ‘ales onan anal and er unt bai, sesming the annual productions $000 unit. 2 the dvoct melo cost of « BkStandard layer $6750 per un what isthe ttl uni os ofthe product? 5 Explain he treatment ofthe cots of the actvty ‘asin player ACTIVITVBASED COSTING CHAPTERS Activitybared costing quality contol costs: manufacturer ‘Siylth Manchester Ld os used traditional cost sccountingeyetem to apply gusty control costs cnformly to at product ta at oF percent of direct lbour cont. Monthy dre abour cost fr the Sat Shea range is i 000 nan attanpt to stint qual contra costs more equitably, NCL Considering stint based costing The data onthe following page relate to monty uty conte Coats forits Satin Sheet range ety ety ever Cost pani acy diver Quant of acthty dear incoingrilinpeton Type mate $9450per Hope Ipc pera Numberofane $02perin 2000 ee Required: 1 Calelat the onthy quit control cost tobe assigned to the Satin Shest produ line under esch the following spproschez (a) Treionl ater which sgn overhead onthe basi of doc nous cous (by Activitrbacad esting. 2 Does the talonal product coating sytem overcost or undercoat the Satin Sheen product ine with Feepect to quality contol costs? By what amount and why? robleme with traditional costing systoms; actvity-bared costing principles: manufacturer Deninsula Manufacturing hs jat completes» msjor change nts quality conta! (QC) process, Dreviusly products wer reviewed by GC Inspectors tthe end of each major proces, and he company 10 OC inspectors wars charged a deect bar ta Une operation oto nan aft to rove eliciney nd qual compleraed video QC system was parched for $500 000. The sytem conus oFs computer video cameras her peripherlhercvare, and zfevare. The nat ‘ate utes carne slaoned by QC engineers at ey pointe in the production procers ach tina an ‘paration change or there 3 now operation, the cameras ara moved and anew mastor petra loaded int the computer by 8 QC engine The carer takes icture ofthe uns in process andthe computer compares them witha picture of good unt. Any clfferones are sant to» QC engineer wre ‘eaves Uv bed units and dicinss the flws wth the production aypervaors, The new ayer hat replaced theo QC inspectors wth two GC engineers ‘Tha operating cots ofthe new QC sytem lidng the serie of the QC engines ave bean included as factory overhead In calulating the company’s plntwide manufacturing overhead rate which ‘Smee on rac labour dlrs The companys managing rectors cooked His production manager has told him how ffnt the new yet yo tore fs lags increase Inthe overhead rat. The ‘ulin ofthe overhead ete before end ete automation mes flows eto fer Budge doc boar east 2000000 420000 Bact oven ates of det bout a) 905 200% Shree hundred per cont lamented the managing ctector: How can we compete withsucha high cverhond rate? Requirod: 1 Define manufecturing everheed and i narufactring overhead 2 Explain wy the incroane nthe oveched rata should not hove «neal three exampls of typical cote that would be included in Peninsula Menufaetrng ° {5 Disass how an aetivty based esting syste might be Peninsula Manufacturing