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What are the Costs per unit of Alfa andBeta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional
What are the Costs per unit of Alfa andBeta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional and ABC costing systems? Compare the costs and prices calculated in the two systems. for calculation (shown in the appendix) and for analysis
Product | Alfa | Beta | |
Production Units | 2,580 | 5100 | |
Material Cost per unit | 31 | 51 | |
Labour Cost per unit | 21 | 17 | |
Machine Hours per unit | 11 | 6 | |
Total overheads: 155,000 | |||
Machine Hours: 58980 hrs | |||
Overheads Allocation | |||
Set up Costs 30% | |||
Inspections 40% | |||
Materials Handling 30% | |||
Costs Pools | |||
Alfa | Beta | Total | |
Setups | 400 | 65 | 465 |
Inspections | 500 | 275 | 775 |
Goods Movements | 625 | 1,700 | 2,325 |
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