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ACTIVITY BASED COSTING Sriram Lid. manufactures four products A, B, C and D. Output and cost data for January 2010 are as follows: Product Output

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ACTIVITY BASED COSTING Sriram Lid. manufactures four products A, B, C and D. Output and cost data for January 2010 are as follows: Product Output units Number of Material cost | Direct labor Machine production per units per unit hours per runs in the (RS) unit period A 20 B 2 10 20 N 50 200 20 200 80 14 Direct labor cost per hour is Rs.10. Overhead costs are as follows: Short-run variable cost Rs 10,560 kapmit01 Feb 7 Set-up costs Rs 1,000 = Expediting and scheduling costs Rs.10,080 CORRECTION Material handling costs Rs. 7,840 setup cost is 14000 Rs 42,480 Required Calculate product costs using the followings approaches: Add a reply... a. Traditional/Absorption costing b. ABC c. Compare and comment on product costs determined under the two approaches

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