(SOLVED) Blusteel Ltd manufactures Blu ray players and uses an activity based product


Question Description:

$20

Blusteel Ltd manufactures Blu-ray players and uses an activity-based product costing system that assigns labour and overhead costs. Below is an incomplete bill of activities for the high-volume product, BluStandard.
Bluesteel Ltd Bill of activities BluStandard
Activity _____________ Cost per unit of activity driver ______ Annual quantity of activity
_____________________________________________________ drivers used by the product
Process payables ………………. $90 per purchase order ………………… 400 purchase order
Program production ……….. $337.50 per production schedule ………………. 100 schedules
Process sales order ……………. $112.50 per sales order ……………………. 300 sales orders
Issue materials ……………………. $180 per issue ……………………………….. 100 issues
Set up solder machine …………… $237 per setup ……………………………….. 100 setups
Solder circuit boards ………….. $22.50 per solder joint ……………….. 40 000 solder joints
Insert motor ………………………. $45 per player …………………………… 5 000 players
Assemble player ………………….. $27 per player …………………………… 5 000 players
Design player ……………….. Directly assigned cost of $18 000 for model BluStandard
Required:
1. Complete the bill of activities and estimate the total activity cost of the BluStandard player, calculated on an annual production is 5000 units.
2. If the direct material cost of a BluStandard player is $67.50 per unit, what is the total unit cost of the product?
3. Explain the treatment of the costs of the activity ‘Design player’?

Answer

$20