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With the help o A company manufacturing two products furnishes the following data Annual output Product Output units Machine Hours Purchase Orders Machine set-ups A
With the help o A company manufacturing two products furnishes the following data Annual output
Product | Output units | Machine Hours | Purchase Orders | Machine set-ups |
A | 5000 | 20000 | 160 | 20 |
B | 60000 | 120000 | 384 | 44 |
Total | 65000 | 140000 | 544 | 64 |
The annual overheads are as under.
| Rs |
Volume related activity costs | 4,50,000 |
Set up related costs | 9,20,000 |
Purchase related costs | 5,18,000 |
Total | 1,888,000 |
You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
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