Question
Company A has the following information applicable to its products: Total Overheads = 100,000 Total machine Hours = 50,000 Product A B Units of
Company A has the following information applicable to its products: Total Overheads = 100,000 Total machine Hours = 50,000 Product A B Units of Production 2,500 5,000 Material Cost p/unit Labour Cost per unit Machine Hrs P/unit 322 30 50 20 16 10 5 % Overheads Set up Costs 35 Inspections 45 Materials Handling 20 42 A B Total Set ups 300 50 350 Inspections 500 250 750 Goods Movements 300 700 1000 What is the Cost per unit of A and B (1) Under Traditional Absorption Costing. (2) Under ABC.
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Management Accounting
Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen
6th Edition
0077185536, 978-0077185534
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