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Globes R Us manufactures three products, X Y and Z. The company has been absorbing overheads traditionally based on production volume and is trying to
Globes R Us manufactures three products, X Y and Z. The company has been absorbing overheads traditionally based on production volume and is trying to move towards activity-based costing. Selling prices are then determined using cost plus 20% pricing. The following is the direct cost information per unit of production: Product X Y Z Total direct cost per unit 66 80 58 Production volume 25,000 20,000 30,000 Batch size 625 1,000 750 Number of orders 200 220 205 Machine hours per unit 2 2 2 Actual overheads were incurred as follows: Cost Pools NS Cost Drivers Machine set up Costs 200,000 Number of batches Number of purchase Material ordering costs 250,000 orders Machine running costs 300.000 Machine hours Total cost 765,000 Calculate the production cost per unit of product X using activity-based costing, NB: You are not required to enter the unit or currency symbol. Enter numerical answer with no spaces. For example: 1000 Answer: teave a message
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