Homework Help is Here – Start Your Trial Now!
Business
Accounting
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  550,000 Set up related costs  820,000 Purchase related costs  618,000 Total  1,988,000    You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.

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  550,000 Set up related costs  820,000 Purchase related costs  618,000 Total  1,988,000    You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Q15.  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

 550,000

Set up related costs

 820,000

Purchase related costs

 618,000

Total

 1,988,000

 

 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.

Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS