Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started