50-7A Company manufactures three products namely X, Y and Z using the same plant and process. The VAC following information are related to a production period: Product Output in units 2,000 5,000 7,000 The production overhead and cost drivers are: Overhead Setup cost Stores receiving. Inspection and control.. Material handling and dispatch Material cost per Labour hour per Direct labour cost per unit hour Rs.6 Rs.4 Rs.8 unit Rs.50 Rs.30 Rs.20 5 hours 3 hours 1 hour Cost drivers No of production runs Requisition raised No of production runs Orders executed Amount (Rs.) 1,54,000 21,000 84,000 56,000 3,15,000 Additional information: Three products were produced in a production run of 50 units each i. The requisition raised for the period in the stores for product X, Y and Z were 10, 20 and 30 respectively, The number of order being in a batch of 100 units for each product and number of total order executed was 140. Required: Statement of total cost and cost per unit for each product by using: a Conventional absorption costing on the basis of labour hours, b. An activity based costing using suitable cost drivers. 103.75 614 505
50-7A Company manufactures three products namely X, Y and Z using the same plant and process. The VAC following information are related to a production period: Product Output in units 2,000 5,000 7,000 The production overhead and cost drivers are: Overhead Setup cost Stores receiving. Inspection and control.. Material handling and dispatch Material cost per Labour hour per Direct labour cost per unit hour Rs.6 Rs.4 Rs.8 unit Rs.50 Rs.30 Rs.20 5 hours 3 hours 1 hour Cost drivers No of production runs Requisition raised No of production runs Orders executed Amount (Rs.) 1,54,000 21,000 84,000 56,000 3,15,000 Additional information: Three products were produced in a production run of 50 units each i. The requisition raised for the period in the stores for product X, Y and Z were 10, 20 and 30 respectively, The number of order being in a batch of 100 units for each product and number of total order executed was 140. Required: Statement of total cost and cost per unit for each product by using: a Conventional absorption costing on the basis of labour hours, b. An activity based costing using suitable cost drivers. 103.75 614 505
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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