Question
QUESTION (1) XXX makes four products which involve ordering materials, setting up machinery and handling production runs. The indirect costs of these activities are as
QUESTION (1) XXX makes four products which involve ordering materials, setting up machinery and handling production runs. The indirect costs of these activities are as follows. Ordering 40,000 Set-up 80,000 Handling 108,000 Other information relating to the products is as follows: Products Number of units Number of orders Set-ups Handling hours X1 2,000 10 200 60 Y2 800 40 300 60 Z3 3,200 50 600 120 W4 4,000 100 500 120 Required: Prepare a schedule of each activity costs per unit and calculate the indirect cost to be allocated to each of the four products.
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