Flow chart
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1) The document outlines the process for obtaining a tech pack from a buyer and developing samples before mass production of an order. 2) Key steps include costing materials and production, creating initial samples, getting buyer approval, sourcing materials, planning production, and executing the bulk order. 3) Feedback is incorporated from buyer approvals and inspections before mass production and shipment.
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Here are the steps to solve this problem:
2. The activity rates are computed as:
Assembling units: AED. 280,000/1,000 units = AED. 280 per unit
Processing orders: AED. 310,000/250 orders = AED. 1,240 per order
Supporting customers: AED. 100,000/100 customers = AED. 1,000 per customer
Activity-Based Costing System 26
3. The table showing overhead costs for VB's 80 units and 4 orders is:
Description Amount (AED.)
Direct materials cost (80 units x AED. 180) 14,400
Direct labor cost
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Flow chart
- 1. Start Obtain tech pack from buyer Costing Sampling Analyze fabric Analyze cost of Obtain general Develop sample as consumption from trims and sewing data from per the tech pack CAD fabric IED Prepare cost sheet Develop proto from sample sample Cost sheet & sample sent to buyer for approval Confirmation Yes Approval No Cost sheet of order reworked Obtain PCD & Source trims & Book washing & Obtain GSD details from fabric from embroidery capacity if from IED production unit concerned dept. required Execution of order by entering details in ERP Prepare sample as per buyer requirements Forward the sample to buyer for approval Hold pre production Comments received from buyer Yes Approval No meeting with the should be incorporated and fit production unit sample reworked Follow up with Submit required Offer garments Follow up Execute production documents to for final on the bulk order End departments & documentation inspection. payments update the buyer dept Truck out for goods