The Accountant for Pix Photographic supply Ltd
Question 1: Activity based costing The Accountant for Pix Photographic supply Ltd has estimated the following activity cost pools and activity drivers for the coming year: Activity Budgeted overhead cost $ Activity driver Required level for activity driver Cost per unit of activity driver Machine setups 300,000 No. of setups 100 $3,000 per setup Material Handling 150,000 Weight of raw material 50,000 kg $3 per kg Hazardous waste control 75,000 Weight of hazardous chemicals used 10,000 kg $7.50 per kg Quality control 112,500 No. of inspections 1,000 $112.50 per inspection Other overhead costs 300,000 Machine hours 20,000 $15 per machine hour Total 937,500 An order for 1,000 boxes of film development chemicals has the following production requirements: Machine…
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