(SOLVED) Puresound Ltd manufactures MP3 players in its Brishbane plant The


Question Description:

$20

Puresound Ltd manufactures MP3 players in its Brishbane plant. The following costs are budgeted for March.
_____________________________________________________ $4, 425 000
Raw materials and components ……………………………………. 900 000
Insurance, plant ……………………………………………………. 180 000
Electricity, machinery ………………………………………………. 90 000
Electricity, light ……………………………………………………. 915 000
Engineering design ……………………………………………… 1 050 000
Depreciation, plant ………………………………………………. 2 100 000
Depreciation, machinery …………………………………………… 60 000
Security wages, plant ……………………………………………… 225 000
Equipment maintenance, wages …………………………………… 45 000
Setup wages ……………………………………………………….. 60 000
Inspection of finished goods ……………………………………… 45 000
Property taxes ……………………………………………………. 180 000
Natural gas, heating ……………………………………………….. 45 000
Required:
1. Assign the costs to the materials-related, machinery-related, set up, inspection, engineering and facility-sustaining activities and calculate the total cost of each activity.
2. Identify an activity driver suitable for assigning each activity’s costs to products?

Answer

$20