Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ali Baba Ltd uses absorption costing to allocate overheads to its three products X, Y and Z. Overheads are absorbed into products on machine hour

image text in transcribed

Ali Baba Ltd uses absorption costing to allocate overheads to its three products X, Y and Z. Overheads are absorbed into products on machine hour basis. Total production overheads for the period are 720,000. Direct labour cost is 8 per hour. The Table below gives the data relating to the individual products; Material Hours per unit Volumes per unit Products Labour hours Machine hours Units 1 2 10 1500 Y 1.5 3 20 4000 Z 2 3.5 24 6000 Overheads absorption rate is 20 per hour. What is the total cost for one unit of Z

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

Students also viewed these Accounting questions