Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Kemp, Jeffrey Waybright

5th edition

134727797, 9780134728643 , 978-0134727790

More Books

Students also viewed these Accounting questions