Assume that firm makes four products A, B, C and D. Data for the past period are
Question:
Assume that firm makes four products A, B, C and D. Data for the past period are as follows:
Direct labour costs Rs. 7 per hour:
Find the unit production cost.
(a). Using conventional product costing using a labour hour or machine hour overhead absorption rate.
(b). Using ABC with the following cost drivers:
(c). Compare the results from the two methods.
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a Using Conventional Product Costing with Labor Hour Overhead Absorption Rate Calculate the labor hours required for each product Product A 8 hours per unit Product B 5 hours per unit Product C 30 hou...View the full answer
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