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A company uses traditional standard costing system. The inspection and set-up costs are actually 1,760 against a budget of 2,000. ABC system is being implemented
A company uses traditional standard costing system. The inspection and set-up costs are actually 1,760 against a budget of 2,000. ABC system is being implemented and accordingly the number of batches is identified as the eost driver for inspection and set up. The budgeted production is 10,000 units in batehes of 1,000 units whereas actually 9,000 units were produced in II batehes. The cost per bateh under ABC system will be A. 160 B. 200 C. 180 D. 220
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