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    HI-resolution Ltd manufactures Blu-ray player

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    HI-resolution Ltd manufactures Blu-ray players un its perth plant. The following costs are budgeted for January.

    Raw material and components $2950000
    Insurance, plant $600000
    Electricity, machinery $120000
    Electricity, light $60000
    Engineering design $610000
    Depreciation, plant $700000
    Depreciation, machinery $1400000
    Security wages, plant $40000
    Equipment manitance, wages $150000
    Equipment maintance, parts $30000
    Setup wages $40000
    Inspection of finished goods $30000
    Property taxes $120000
    Natural gas, heating $30000

    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 assingning each activity's costs to products

    © BrainMass Inc. brainmass.com June 4, 2020, 2:43 am ad1c9bdddf
    https://brainmass.com/business/accounting/hi-resolution-ltd-manufactures-blu-ray-player-475422

    Solution Summary

    An excel sheet with all the steps for the calculation is presented. Here the costs to the materials-related, machinery related, set up, inspection, engineering and facility-sustaining activities are each found individually. Also, the activity driver is explained.

    $2.19

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