Q-5. A company manufactures three products A, B, and C using the same equipment and processes....
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Q-5. A company manufactures three products A, B, and C using the same equipment and processes. Data for the period is given below. A B C 20000 25000 2000 Production (units) Sales price (per unit) $20 $20 $20 Material cost per unit $5 $10 Labour hours per unit 2 hours 1 hour Labour is paid at the rate of $5 per hour were as follows: Overheads for the period Set up costs 90000 Receiving 30000 Dispatch 15000 Machining 55000 $190000 Cost driver data: A B C Machine hours per unit 2 2 2 Number of set ups 10 13 2 Number of deliveries received 10 10 2 Number of orders dispatched 20 20 20 Required: 1.Calculate the cost per unit, absorbing all the overheads on the basis of labour hours. (5) 2. Calculate the cost per unit, absorbing the overheads on the basis of Activity based costing approach. (5) $10 1 hour Q-5. A company manufactures three products A, B, and C using the same equipment and processes. Data for the period is given below. A B C 20000 25000 2000 Production (units) Sales price (per unit) $20 $20 $20 Material cost per unit $5 $10 Labour hours per unit 2 hours 1 hour Labour is paid at the rate of $5 per hour were as follows: Overheads for the period Set up costs 90000 Receiving 30000 Dispatch 15000 Machining 55000 $190000 Cost driver data: A B C Machine hours per unit 2 2 2 Number of set ups 10 13 2 Number of deliveries received 10 10 2 Number of orders dispatched 20 20 20 Required: 1.Calculate the cost per unit, absorbing all the overheads on the basis of labour hours. (5) 2. Calculate the cost per unit, absorbing the overheads on the basis of Activity based costing approach. (5) $10 1 hour
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Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Posted Date:
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