Question
XYZ Ltd. manufactures u o products X and Y. Product X is produced in two runs of 500 units and product in five independent runs
XYZ Ltd. manufactures u o products X and Y. Product X is produced in two runs of 500 units and product in five independent runs of 200 units. Assuming each product consumes equal direct material and direct labour content.
The manufacturing overheads amounts to Rs.14.000, Which comprises of line set-up costs of Rs. 7,000, product inspection costs of Rs. 3,500 and Rs. 3,500 for material movement to the product line.
Total costs incurred for producing 1,000 units of product X and 1,000 units of product Y will be as follows
Rs. Direct materials 10,000
Direct labour 2,000
Manufacturing overheads 14,000
Total 26,000
(a) Product wise total cost under Traditional Costing Product X ___________
(b) Product wise total cost under Traditional Costing Product Y___________
(c) Product wise unit cost under Traditional Costing Product X___________
(d) Product wise unit cost under Traditional Costing Product Y___________
(e) Product wise total cost under Activity Based Costing Product X___________
(f) Product wise total cost under Activity Based Costing Product Y___________
(g) Product wise unit cost under Activity Based Costing Product X___________
(h) Product wise unit cost under Activity Based Costing Product Y___________
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