RST Corp. would like to institute an activity-based costing system to price products. The company’s Purchasing Department incurs costs of ₱550,000 per year and has six employees. Purchasing has determined the three major activities that occur during the year. Allocation # of Total Activity Measure People Cost Issuing purchase orders # of purchase orders 1 ₱150,000 Reviewing receiving reports # of receiving reports 2 ₱175,000 Making phone calls # of phone calls 3 ₱225,000 During the year 50,000 phone calls were made in the department; 15,000 purchase orders were issued; and 10,000 shipments were received. Product A required 200 phone calls, 150 receiving reports, and 50 purchase orders. Product B required 350 phone calls, 400 receiving reports, and 100 purchase orders. Required: a. Determine the amount of purchasing department cost that should be assigned to each of these products. b. Determine purchasing department cost per unit if 1,500 units of Product A and 3,000 units of Product B were manufactured during the year

The following information has been taken from the cost records of RST Company for the past year: Raw material used in production ₱326 Total manufacturing costs charged to production during the year (includes direct material, direct labor, and overhead equal to 60% of direct labor cost) 686 Cost of goods available for sale 826 Selling and Administrative expenses 25 Inventories Beginning Ending Raw Material ₱75 ₱ 85 Work in Process 80 30 Finished Goods 90 110 Required: 1. Raw materials purchased 2. Direct labor 3. Cost of goods available for sale 4. Cost of goods manufactured 5. Cost of goods sold

Fill in the Blank QuestionFill in the blank question.RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a target income of $20,000. The sales level in dollars to achieve the desired target income is $.

Fill in the Blank QuestionFill in the blank question.RST Company produces a product that has a selling price of $10 per unit and variable cost of $6 per unit. The company's fixed costs are $30,000. If the company sells 15,000 units, the degree of operating leverage is .

A company sells a product for Rs 10 per unit, and incurs Rs 4 per unit for variable costs in its manufacture. The fixed costs are Rs 900 per month and are absorbed on the basis of the normal production volume of 250 units per month. The activity levels for the last four months, when no expenditure variances arose, were as follows: Fundamentals of Cost and Management Accounting (Study Text) 170 | P a g e 1st month units 2nd month units 3rd month units 4th month units Total units Opening stock – 200 300 300 – Production 300 250 200 200 950 ___ ___ ___ ___ ___ 300 450 500 500 950 Closing stock 200 300 300 200 200 ___ ___ ___ ___ ___ Sales 100 150 200 300 750 ___ ___ ___ ___ ___ make The profit statement using absorption costing .

Fill in the Blank QuestionFill in the blank question.RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. The company is considering purchasing a new manufacturing machine which would improve efficiency. The new machine would decrease the variable cost to $4, but increase fixed costs by $15,000. The revised break-even point in dollars is $.