Task 1. Following table shows some activities and cost drivers for those activities not necessarily in an arranged manne

[answerhappygod]

Task 1 Following Table Shows Some Activities And Cost Drivers For Those Activities Not Necessarily In An Arranged Manne 1 (126.88 KiB) Viewed 44 times

Task 1. Following table shows some activities and cost drivers for those activities not necessarily in an arranged manner. You are required to re arrange the table so as to write appropriate cost driver in front of relevant cost pool. 3 marks Cost pool Cost driver Customer order Direct Labour hours Production Number of contacts with customers Purchasing materials Inspecting hours Assembling products Machine setups Purchase requisitions Inspecting products Customer service Number of orders Task 2. Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 is used in direct labour, while the direct material for the double is $40 per unit, and the labour cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity Cost Estimated Use per Use per Twin Pools Overhead Double Driver Square feet of pine Framing 210,000 5,000 2,000 Padding Square feet of quilting 220,000 120,000 100,000 Square feet of filling 320,000 500,000 300,000 Filling Labeling 240,000 800,000 400,000 Number of boxes Number of inspections Inspection 170,000 12,000 5,000 How much does each unit cost to manufacture? 7 marks