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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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