Question
6. ABC co. has identified the following two overhead cost items and 3 activities. Two overheads are Indirect labor of Rs. 20,000 and IT support
6. ABC co. has identified the following two overhead cost items and 3 activities. Two overheads are Indirect labor of Rs. 20,000 and IT support of Rs. 50,000. Three activities are production support, materials planning and machine setup. Three activities take 40%, 40% and 20% of indirect labour and 50%,20% and 30% of IT support respectively. If the cost driver for Material planning was no. of purchase order and total number of purchase orders were 6,000, calculate cost per unit of cost driver for material planning.
Rs. 3.33 per purchase order
Rs. 8.33 per purchase order
Rs. 11. 66 per purchase order
Rs. 3 per purchase order
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