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Practice File

The document outlines various budgeting components including sales, production, and purchase budgets, along with detailed cost analysis using ABC costing. It presents data on costs associated with different departments, including machine, setup, stores, inspection, and material handling. Additionally, it includes calculations for variable costs and factory overhead rates across different production scenarios.

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nkhan34599
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20 views6 pages

Practice File

The document outlines various budgeting components including sales, production, and purchase budgets, along with detailed cost analysis using ABC costing. It presents data on costs associated with different departments, including machine, setup, stores, inspection, and material handling. Additionally, it includes calculations for variable costs and factory overhead rates across different production scenarios.

Uploaded by

nkhan34599
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Budgeting

Production Budget
Sales Budget
Purchase Budget

Sales Budget
Units Sold
Price

Production Budget
Closing Inventory
Purchases
less: Opening Inventory
ABC Costing
Cost Cost Drivers RATE
Machine Dept Cost 10,430 1300 8
Set up Cost 5,250 21 250
Stores 3,600 21 171
inspection 2,100 21 100
material handling 4,620 42 110

A B C D
DM 4,800 5,000 2,400 7,200
DL 3,360 2,100 1,120 2,520
Machine Dept Cost 3,851 2,407 1,284 2,888
Set up Cost 1,500 1,250 1,000 1,500
Stores 1,029 857 686 1,029
inspection 600 500 400 600
material handling 1,320 1,100 880 1,320
Total

a. FOH Rate 16

P Q R S
FOH / Factory hour 824 1,647 8,236 16,473

b. Short run Variable cost 8,250 1650 5


Scheduling Cost 7,680 24 320
Set Up Cost 3,600 24 150
Material Handling Cost 7,650 3825 2
27,180 5523 5

P Q R S
Short run Variable cost 250 500 2,500 5,000
Scheduling Cost 960 1,280 2,240 3,200
Set Up Cost 450 600 1,050 1,500
Material Handling Cost 400 250 4,000 3,000
Total
19,400
9,100
10,430
5,250
3,600
2,100
4,620
54,500

Total
27,180

Total
8,250
7,680
3,600
7,650
27,180

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