Bunya Metals CC manufactures and sells three door handles:
golden, silver and bronze. The following data relates to the period
ended 30 April 2022.
Golden
Silver
Bronze
Budgeted production and sales (units)
3 000
5 000
4 000
Seling price (N$)
1 200
850
720
Direct materials per unit (N$)
250
100
160
Direct labour cost per unit (N$)
300
60
180
Total overhead costs and activity levels for the year are
estimated as follows:
Activity
Overhead cost N$
Machine setups
931 000
Quality inspections
910 000
Material handling
350 000
Total
2 191 000
Other relevant information:
Golden
Silver
Bronze
Number of requisitions
35
20
15
Direct labour hours per unit
40
10
30
Number of setups
100
50
100
Inspections hours
300
200
200
1. Calculate the total overheads allocated to the products based
on the cost drivers: Golden [2]
2. Calculate the total overheads allocated to the products based
on the cost drivers: Silver [2]
3. Calculate the total overheads allocated to the products based
on the cost drivers: Bronze [2]
Bunya Metals CC manufactures and sells three door handles: golden, silver and bronze. The following data relates to the
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