ABC ltd has the following overhead costs. $ No. of cost drivers Quality 90000 450 inspection The
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Question:
ABC ltd has the following overhead costs.
$ No. of cost drivers
Quality 90000 450 inspection
The process set up 135000 450 setups
Purchasing 105000 1000 purchase orders
Customer order 120000 2000 customers
processing
Occupancy costs 150000 75000 machine hours
ABC makes a standard product Glaze. The cost details are as follows.
Unit material costs $0.50
Unit labor costs $0.40
Total production for the coming year 1000000 units
No. of production runs 50
No. purchase order required 50
No. customer orders 10
Units machine time 3 minutes
The product is inspected once at the end of each production run
Required:
Calculated standard cost of Glaze.
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