QUESTION 1
INDEPENDENT PART A
Calculate the manufacturing overheads per unit for both Rocky and BMY bikes
using activity-based costing.
Rocky BMY
Machining costs
2 623 050 2 623 050
(150 × 375 ); (225 × 375 ) 1 049 220 1 573 830
Assembling costs
2 250 000 2 250 000
(7 × 37 ); (30 × 37 ) 425 675,68 1 824 324,32
Quality inspections
5 265 000 5 265 000
(15 × 75 ); ( 75 × 60) 1 053 000 4 212 000
Stores receiving costs
2 610 000 2 610 000
(369 × 1044 ); (675 × 1044 ) 922 500 1 687 500
Stores issues costs
3 065 023 3065023
( 1630 × 650); (980× 1630 ) 1 222 248,44 1 842 774,56
TOTAL 4 672 644,11 11 140 428,89
INDEPENDENT PART A
Calculate the manufacturing overheads per unit for both Rocky and BMY bikes
using activity-based costing.
Rocky BMY
Machining costs
2 623 050 2 623 050
(150 × 375 ); (225 × 375 ) 1 049 220 1 573 830
Assembling costs
2 250 000 2 250 000
(7 × 37 ); (30 × 37 ) 425 675,68 1 824 324,32
Quality inspections
5 265 000 5 265 000
(15 × 75 ); ( 75 × 60) 1 053 000 4 212 000
Stores receiving costs
2 610 000 2 610 000
(369 × 1044 ); (675 × 1044 ) 922 500 1 687 500
Stores issues costs
3 065 023 3065023
( 1630 × 650); (980× 1630 ) 1 222 248,44 1 842 774,56
TOTAL 4 672 644,11 11 140 428,89
