Company A has the following information applicable to its products: Total Overheads = 100,000 Total machine...

 

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Company A has the following information applicable to its products: Total Overheads = 100,000 Total machine Hours = 50,000 Product A B Units of Production 2,500 5,000 Material Cost p/unit Labour Cost per unit Machine Hrs P/unit 322 30 50 20 16 10 5 % Overheads Set up Costs 35 Inspections 45 Materials Handling 20 42 A B Total Set ups 300 50 350 Inspections 500 250 750 Goods Movements 300 700 1000 What is the Cost per unit of A and B (1) Under Traditional Absorption Costing. (2) Under ABC. Company A has the following information applicable to its products: Total Overheads = 100,000 Total machine Hours = 50,000 Product A B Units of Production 2,500 5,000 Material Cost p/unit Labour Cost per unit Machine Hrs P/unit 322 30 50 20 16 10 5 % Overheads Set up Costs 35 Inspections 45 Materials Handling 20 42 A B Total Set ups 300 50 350 Inspections 500 250 750 Goods Movements 300 700 1000 What is the Cost per unit of A and B (1) Under Traditional Absorption Costing. (2) Under ABC.

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Answer calculate the cost per unit of products A and B under both traditional absorption costing and activitybased costing ABC Traditional Absorption ... View the full answer