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state your answer clearly at top please of your answering page :) Raleigh Ltd produces two products - Economy and De Luxe. The business produces
state your answer clearly at top please of your answering page :)
Raleigh Ltd produces two products - Economy and De Luxe. The business produces these products in batches. Total annual overheads are 4,000,000 and in the forthcoming year, the business expects to make and sell 80,000 Economy and 20,000 De Luxe products. Details of the activities and cost drivers for overheads are as follows: Activity (and cost driver) Cost Annual number of activities 000 Total Economy De Luxe 800 200 40 160 Number of machine setups Number of quality control inspections Number of sales orders processed 400 3,000 750 2,250 8,000 7,200 800 300 2,500 General production (machine hours) 300,000 180,000 120,000 Total 4,000 Calculate a suitable overhead cost per unit for each product using activity based costing. (All workings to nearest whole number.) Overhead cost per unit (Economy) Overhead cost per unit (De Luxe) =
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