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In Lecture Exercise_2011 - 50,000 Writers artists 5...

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In Lecture Exercise Wyvern Portal Comic Ltd (Wyvern Ltd) produces and prints two lines of comic books: Serpent Sword and Galaxy Portal. Wyvern Ltd prints 12 issues of each comic line per year. Wyvern Ltd is currently using a FBC system: overhead costs are accumulated into a factorywide pool and allocated to products based on direct labour hours. Its CFO Miss Eva Winters is contemplating changing from the current FBC system to an Activity Based Costing (ABC) system. The following information has been provided for the month of June 2011: Serpent Sword Galaxy Portal Direct Material per comic book $0.50 $0.50 Direct Labour rate $30.00 $30.00 Direct Labour hours 2,500 500 Comics printed 50,000 10,000 Total overhead cost $270,000 Resource information for Activity Based Costing: Resources : Resource Driver Quantity of Resource Driver $ Graphics computer deprn 10,000 # Computers 5 Salaries: writers/ artists 50,000
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Unformatted text preview: 50,000 # Writers/ artists 5 Printing machine deprn 36,000 # Printing Machines 12 Salaries: printing staff 84,000 # Printing staff 21 Advertising 90,000 # Ad mins 90 mins 270,000 There are four main activity pools: Activities Resources Consumed Activity Drivers Story development 5 Graphics computer Number of main characters 5 Writers/ artists 3 Printing staff Printing comics 12 Printing machines Number of comics 6 Printing staff Printing set up 12 Employees Number of printing batches Advertising 90 Advertising minutes Number of advertising minutes Activity drivers relating to the above activity pools are as follows: Quantity of Activity Drivers Serpent Sword Galaxy Portal Total Number of main characters 4 5 9 Number of comics printed 50,000 10,000 60,000 Number of printing batches 50 25 75 Number of advertisements mins 45 45 90 Required: Calculate the total cost per Serpent Sword and Galaxy Portal comic book....
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