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The total overheads of a company are 630,000. The cost pool for machine maintenance is half that of the cost pool for set ups. The
The total overheads of a company are 630,000. The cost pool for machine maintenance is half that of the cost pool for set ups. The set up costs are half that of the largest cost pool, which accounts for 40% of the total indirect costs. The following data is available for the three products made by the company:
X Y Z
Labour hours 160,000Y 140,000 120,000
Machine hours 55,000 35,000 90,000
Number of production runs 80,000 50,000 90,000
What is the value of the cost driver rate for maintenance?
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