A company uses activity based costing to divide overheads between its three products and has the following budgeted information B U G Production level 30,000 20,000 30,000 Batch size 5,000 4,000 6,000 Machine set up costs are budgeted at £1,200,000 for the period and are related to the number of batches. Calculate the cost per set-up and the set-up costs that would be attributed to each unit of the three products.
A company uses activity based costing to divide overheads between its three products and has the following budgeted information B U G Production level 30,000 20,000 30,000 Batch size 5,000 4,000 6,000 Machine set up costs are budgeted at £1,200,000 for the period and are related to the number of batches. Calculate the cost per set-up and the set-up costs that would be attributed to each unit of the three products.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company uses activity based costing to divide
|
|
B |
U |
G |
|
Production level |
30,000 |
20,000 |
30,000 |
|
Batch size |
5,000 |
4,000 |
6,000 |
Machine set up costs are budgeted at £1,200,000 for the period and are related to the number of batches.
Calculate the cost per set-up and the set-up costs that would be attributed to each unit of the three products.
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