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Question 2 Ash Ltd. Currently manufacture 3 products, M, K and H. The relevant production information is as follows: M K H Production (units)

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Question 2 Ash Ltd. Currently manufacture 3 products, M, K and H. The relevant production information is as follows: M K H Production (units) 300 units 240 units 400 units Batch size 30 units 20 units 50 units Machine set-up per 2 set-ups 1 set-up 2 set-ups batch Processing time per unit 1 minute 2 minutes 1.5 minutes Fixed overhead costs amount to a total of 13,590 and have been analysed as follows: Machine set up costs Processing costs 6000 7590 Required: Using Activity Based Costing, calculate the fixed overhead cost per unit of product K.

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