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ton Self-assessment question 5.1 Paid make a product in two Guascaled Bed Scor The to these products at a price that gives a standard protect

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ton Self-assessment question 5.1 Paid make a product in two Guascaled Bed Scor The to these products at a price that gives a standard protect cost. Management is concerned by the lack of profit Full cost for one unit of a product cated by changing och type product on the basis of direct about hours. The controlows: Doctbour 20 houn Direct material are 1.000.000 20 DECORATION 159 U - E R FULL COST TRADI Basic Super E FULL COSTING(AB Basic Super D.M D.L Share of Overheads Full cost per unit Profit mark up -25% S.Price per unit DM D.L Share of Overheads (ABC) Full cost per unit Profit mark up -25% S.Price per unit 0 0 0 0 OAR = Total Overheads! Total Labour Hours = 1,000,000() ABC calculation: Step 1: Calculate cost driver rate (Overhead per cost pool/Number of Drivers Cost Pool Number of Cost Cost Driver Rate (E) Machine Set up 280,000 100 Q. Inspections 220,000 2,000 Sales Order 240,000 5,000 G.Overheads 260,000 500,000 Total Overheads 1,000,000 Machine Set up Q. Inspections Sales Order G.Overheads Total Overheads Step 2: Allocate overheads to each product type Basic Basic Super Super No of driver No of driver 20 80 500 1,500 1,500 3,500 350,000 150,000 Step 3: Overhead cost per unit = Total Overhead' Units produced

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