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Fun Bakery has three shops in town Total Shop 1 Shop 2 Shop 3 Budgeted overhead 40.000 10.000 25.000 Units produced 250 365 423 Per
Fun Bakery has three shops in town | |||
Total | Shop 1 | Shop 2 | Shop 3 |
Budgeted overhead | 40.000 | 10.000 | 25.000 |
Units produced | 250 | 365 | 423 |
Per unit | |||
Direct materials | 25.000 | 35.000 | 14.000 |
Direct wages | 60.000 | 40.000 | 80.000 |
You are required to calculate for each department: | |||
a) The absorption rate per unit | |||
b) Cost per unit |
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