Question
1.Isa & Co manufactures three types of chairs: X, Y and Z. The following information relates to July 2020: X Y Z Units produced and
1.Isa & Co manufactures three types of chairs: X, Y and Z. The following information relates to July 2020: X Y Z Units produced and sold 30 120 150 $ $ $ Selling price per chair 395 285 225 Material cost per chair 85 60 50 Labour cost per chair 120 100 80 Cost driver data: X Y Z Wood (metres) per chair 10 9 9 Leather (metres) per chair 4 2 0 Despatch and transport (cost driver is units produced and sold) The overheads in July comprised: Purchasing and checking leather hide $4,000 Purchasing wood $2,400 Despatch and transport $6,000 Required: Calculate Isa & Co costs and profits per chair type X, Y and Z for July 2020, using Activity-based costing (ABC) method.
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