Question
1. (a) XYZ Ltd. Produces three products A, B and C for which the standard costs and quantities per unit are as follows: (5
1. (a) XYZ Ltd. Produces three products A, B and C for which the standard costs and quantities per unit are as follows: (5 Marks) Particulars Output (Units) Direct material cost per unit A B C 10000 20000 30000 Rs60 Rs 40 Rs 20 Direct Labour cost per unit (@Rs 40) Rs 40 Rs 80 Rs 120 Machine hours per unit 3 2 1 Number of purchase requisitions Number of machine set-ups 1000 150 200 300 100 50 Production overhead = P Rs 1400000 Q Rs 2200000 Department P is labour intensive, and Q is machine intensive. Total labour hours in Dept. P = 140000 and Total machine hours in Dept. Q = 100000 Production overhead by activity Receiving and Inspection Rs 1200000 Production scheduling/ set up= Rs 2400000 Prepare statement of cost per unit under traditional absorption method and activity-based costing approaches.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started