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Direct wages A company makes two distinct types of vehicles, A and B. The total expenses during a period as shown by the books for
Direct wages A company makes two distinct types of vehicles, A and B. The total expenses during a period as shown by the books for the assembly of 600 of the type A and 800 of the type B vehicles are as under: $ Materials 1,98,000 12,000 Stores overheads 19,800 Running expenses of machines 4,400 Depreciation 2,200 Labour amenities 1,500 Works general overheads 30,000 Administration and selling overheads 26,800 The other data available to you is: A:B Material cost ratio per unit 1:2 Direct labour ratio per unit 2:3 Machine utilization ratio per unit 1:2 Calculate the cost of each vehicle per unit giving reasons for the bases of apportionment adopted by you
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