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Citra Bhd manufactures two types the basis of direct labour hours. Anticipated overheads for the upcoming accounting period is RM972,500. Information about the company's products is as follows: С-1 C-2 Expected production volume (units) 3,000 12,000 Direct materials cost RM32 per unit RM40 per unit Direct labour/unit (RM15/hour) RM30 RM60 The overheads of Citra Bhd of RM972,500 can be identified with three main activities as Follows: Order processing Machine processing Product inspection These activities are driven by number of orders processed, machine hours worked and nspection hours respectively. Data relevant to these activities are as follows: RM 180,000 RM 650, 000 RM 142,500 С-1 C-2 Order processed 380 220 Machine hours worked 22,000 28,000 Inspection hours 3,000 12,000 Management Accounting which product is overcost and which product is undercost, and how much? Additionally, calculate the amount of the cost distortion for each product. c. Assuming the use of activity-based costing, compute the unit manufacturing costs of products C-1 and C-2 if the expected manufacturing volume is attained. d. Comparing the unit product costs calculated under the two costing systems, state Y and Power Y. The company currently use Duoduction and prod.

Citra Bhd manufactures two types the basis of direct labour hours. Anticipated overheads for the upcoming accounting period is RM972,500. Information about the company's products is as follows: С-1 C-2 Expected production volume (units) 3,000 12,000 Direct materials cost RM32 per unit RM40 per unit Direct labour/unit (RM15/hour) RM30 RM60 The overheads of Citra Bhd of RM972,500 can be identified with three main activities as Follows: Order processing Machine processing Product inspection These activities are driven by number of orders processed, machine hours worked and nspection hours respectively. Data relevant to these activities are as follows: RM 180,000 RM 650, 000 RM 142,500 С-1 C-2 Order processed 380 220 Machine hours worked 22,000 28,000 Inspection hours 3,000 12,000 Management Accounting which product is overcost and which product is undercost, and how much? Additionally, calculate the amount of the cost distortion for each product. c. Assuming the use of activity-based costing, compute the unit manufacturing costs of products C-1 and C-2 if the expected manufacturing volume is attained. d. Comparing the unit product costs calculated under the two costing systems, state Y and Power Y. The company currently use Duoduction and prod.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Provide answer for question C and D

Citra Bhd manufactures two types of components, C-1 and C-2 and absorbs overheads on the basis of direct labour hours. Anticipated overheads for the upcoming accounting period is RM972,500. Information about the company's products is as follows: C-1 C-2 Expected production volume (units) 3,000 12,000 Direct materials cost RM32 per unit RM40 per unit Direct labour/unit (RM15/hour) RM30 RM60 The overheads of Citra Bhd of RM972,500 can be identified with three main activities as follows: Order processing RM 180,000 Machine processing RM 650, 000 Product inspection RM 142,500 These activities are driven by number of orders processed, machine hours worked and inspection hours respectively. Data relevant to these activities are as follows: С-1 C-2 Order processed 380 220 Machine hours worked 22,000 28,000 Inspection hours 3,000 12,000 120 Management Accounting Dower X and Power Y. The company currently Qurs Production and producs
Transcribed Image Text:Citra Bhd manufactures two types of components, C-1 and C-2 and absorbs overheads on the basis of direct labour hours. Anticipated overheads for the upcoming accounting period is RM972,500. Information about the company's products is as follows: C-1 C-2 Expected production volume (units) 3,000 12,000 Direct materials cost RM32 per unit RM40 per unit Direct labour/unit (RM15/hour) RM30 RM60 The overheads of Citra Bhd of RM972,500 can be identified with three main activities as follows: Order processing RM 180,000 Machine processing RM 650, 000 Product inspection RM 142,500 These activities are driven by number of orders processed, machine hours worked and inspection hours respectively. Data relevant to these activities are as follows: С-1 C-2 Order processed 380 220 Machine hours worked 22,000 28,000 Inspection hours 3,000 12,000 120 Management Accounting Dower X and Power Y. The company currently Qurs Production and producs
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