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QUESTION45. Vasco manufactures tubes for industry. The calculation of the full ...
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QUESTION45. Vasco manufactures tubes for industry. The calculation of the full cost is obtained by adding a direct cost item – the cost of components – and indirect costs calculated via an ABC system, the parameters of which are presented below.
TUB1 and TUB2 are two products in Vasco's catalogue. The cost of components for TUB1 is €250 per unit and that of TUB2 is €100 per unit.
Activity
|
Cost driver
|
Unit cost of cost driver (in €)
|
Number of cost drivers per product
| |
TUB1
|
TUB2
| |||
Assembly
|
Number of components
|
€ 2.5
|
10
|
6
|
Soldering
|
Soldering time (hours)
|
€ 4
|
3 hours
|
1 hour
|
Polishing
|
Polishing time (minutes)
|
€ 8
|
3 min.
|
0
|
Drying
|
Drying time (hours)
|
€ 8
|
2 hours
|
4 hours
|
Ionization
|
Ionization time (Hours)
|
€ 3
|
2 hours
|
2 hours
|
Quality control
|
Control time (minutes)
|
€ 5
|
8 min.
|
5 min.
|
How many indirect costs are allocated to TUB1?