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1 of 15 Kaplan Electrical uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs,
1 of 15 Kaplan Electrical uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume and cost drivers: Overhead Costs Machinary Set-ups Materials Handling 142500 42000 70000 Total 254500 Product A B C Production and sales Number of production runs Number of stores orders 3000 units 1500 units 1000 units 9 3 14 17 2 15 per unit per unit per unit 30 34 20 2 1 2 1 0.5 1 Direct costs Machine hours Direct labour hours If materials handling costs are driven by the number of stores orders what is the materials handling cost per unit traced to product B? (Give your answer to 2 decimal places.) Material handling cost for a unit of B
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