Question
A company Manufacturing two product furnishes the following data for a year. Product Annual output in units Total Machine hours Total number of purchase order
A company Manufacturing two product furnishes the following data for a year.
Product
Annual output
in units
Total Machine
hours
Total number
of purchase
order
Total numbers
of set ups
A
5000
20,000
160
20
B
60,000
1,20,000
384
44
The Annual overheads are as under
Volume related activity cost
RS 50000
Set up related cost
8,20000
Purchase related costs 6,18,000
You are required to calculate the cost per unit of each product A and B based on
1)
Traditional Method of charging overheads
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
11th Edition
1119594596, 978-1119594598
