A company has decided to use ABC absorption costing for its overheads. It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver. Cost Pool Cost Driver Rate per Cost Driver Quality Costs Inspections £4175 Setup Costs Setups £3495 Machine Costs Batches £47 Product Z has 10 inspections, 25 setups and 100 batches. The company produced 10,000 units of Z. What is the overhead absorption cost per unit of Z? Round your answer at the end to 2 decimal places. Select one: a. £1338.25 O b. £0.77 O c. £13.38 O d. £12.92

A company has decided to use ABC absorption costing for its overheads. It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver. Cost Pool Cost Driver Rate per Cost Driver Quality Costs Inspections £4175 Setup Costs Setups £3495 Machine Costs Batches £47 Product Z has 10 inspections, 25 setups and 100 batches. The company produced 10,000 units of Z. What is the overhead absorption cost per unit of Z? Round your answer at the end to 2 decimal places. Select one: a. £1338.25 O b. £0.77 O c. £13.38 O d. £12.92

Name: A company has decided to use ABC absorption costing for its overheads
Uploaded: 2024-03-20T06:33:06.000Z
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Description: A company has decided to use ABC absorption costing for its overheads.It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver.Cost PoolCost DriverRate per Cost DriverQuality CostsInspec

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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