For the calculations, show your workings, not only the final result,1.AlternaTve cosTng systems
Cylon Robotc IndusTries (CRI) has seen ouT of conTrol Testng cosTs associaTed wiTh
iTs producT lines Domestc Robotcs and IndusTrial Robotcs. CRI’s currenT costng
sysTem allocaTes ToTal Testng cosTs To The Domestc and IndusTrial Robotcs based
on The number of roboTs assembled in each line. ±he logic is ThaT each assembled
roboT requires Testng. ±oTal annual Testng cosTs for The corporaton on These Two
lines were expecTed aT £ 300 000. ±he Table below shows The expecTed volume of
roboTs assembled.
Measure
Domestc
IndusTrial
±oTal
Number of roboTs assembled
1 000
1 000
2 000
Number of TesTs run
2 000
4 000
6 000
±estng sTaF hours
10 000
5 000
15 000
QuesTons:
1
CalculaTe The ²rm-wide overhead allocaton raTe using The number of
roboTs as The allocaton base.
2
WhaT is The amounT of Testng cosTs assigned To The Domestc and To The
IndusTrial lines?
3
Based on your resulTs for The previous queston, whaT is The cosT per
IndusTrial Testng hour?
CRI’s accounTanT, Dana Scully held discussions wiTh experienced members of The
Testng Team. She decided ThaT if Testng cosTs were assigned To The Two producT lines
based on The number of tmes ThaT The Teams musT run TesTs, This mighT be a more
accuraTe estmaTe on The use of cosTly sTaF resources. ±o compare wiTh The currenT
costng sysTem, Dana decided To develop an alTernatve costng sysTem wiTh The help
of her accountng so³ware package. ±his sysTem assigns The ToTal Testng cosTs To The
Domestc and IndusTrial producT line based on The number of tmes The Teams run a
TesT. She named This new sysTem The ‘TesT-run costng sysTem’. ±he Table above also
shows informaton on TesTs run for The diFerenT lines.
4
CalculaTe The ²rm-wide raTe using The number of TesTs run.
5
WhaT is The amounT of Testng cosTs ThaT The TesT-run sysTem assigns
To The Two producT lines?
6
WiTh your resulTs for The previous queston, esTablish The cosT per
IndusTrial Testng hour under The TesT-run costng.
This question was answered on: Sep 21, 2023
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