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Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers . Activity Cost (OMR)
Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers.
Activity
Cost (OMR)
Setup
250,000
Machine maintenance
75,000
Total indirect manufacturing costs
325,000
Particulars
Product- pen
Product- pencil
Total( OMR)
Direct labor hours
7000
3000
10,000
Number of setups
70
30
100
Number of machine hours
1,200
3,800
5,000
The Deep manufactures plans to produce 500 units of pens and 1000 units of pencils. Compute the activity based cost per unit of each product.
Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers.
Activity | Cost (OMR) |
Setup | 250,000 |
Machine maintenance | 75,000 |
Total indirect manufacturing costs | 325,000 |
Particulars | Product- pen | Product- pencil | Total( OMR) |
Direct labor hours | 7000 | 3000 | 10,000 |
Number of setups | 70 | 30 | 100 |
Number of machine hours | 1,200 | 3,800 | 5,000 |
The Deep manufactures plans to produce 500 units of pens and 1000 units of pencils. Compute the activity based cost per unit of each product.
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