AJ manufacturing company produces about one hundred products. Its largest selling product is product X andits smallest is product Y. relevant data is given below:ParticularsProductProductTotalproduct1000XY500050,000Units produced per annumMaterial cost per unitDirect labor per unitMachine time per unitNo. of set ups per unitNo. of purchase orders for materialRs.1Rs.115 min15 min1 hour1 hour2425003662800No. of times material handled2001512000Rs.5.00Direct labor cost per hourOverhead Costs:Set upPurchasingMaterial handling280,000145,000130,000660,0001,215,000MachinesTotal Machine hours are 600,000 hours.Required:a) Find out the production unit cost of product X and product Y.b) Using conventional product costing machine hour overhead absorption rate.c) Using ABC (Activity Base Costing ) compare the results of methods and comment.AcGo

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Description: AJ manufacturing company produces about one hundred products. Its largest selling product is product X andits smallest is product Y. relevant data is given below:ParticularsProductProductTotalproduct1000XY500050,000Units produced per annumMaterial c

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AJ manufacturing company produces about one hundred products. Its largest selling product is product X and its smallest is product Y. relevant data is given below: |Particulars Product Product Total Y product 5000 1000 50,000 Units produced per annum Material cost per unit Direct labor per unit Machine time per unit No. of set ups per unit No. of purchase orders for material Rs.1 Rs.1 15 min 15 min 1 hour 1 hour 2 24 500 36 6 2800 No. of times material handled 200 15 12000 Rs.5.00 Direct labor cost per hour Overhead Costs: Set up Purchasing Material handling 280,000 145,000 130,000 660,000 1,215,000 Machines Total Machine hours are 600,000 hours. Required: a) Find out the production unit cost of product X and product Y. b) Using conventional product costing machine hour overhead absorption rate. A

AJ manufacturing company produces about one hundred products. Its largest selling product is product X and its smallest is product Y. relevant data is given below: |Particulars Product Product Total Y product 5000 1000 50,000 Units produced per annum Material cost per unit Direct labor per unit Machine time per unit No. of set ups per unit No. of purchase orders for material Rs.1 Rs.1 15 min 15 min 1 hour 1 hour 2 24 500 36 6 2800 No. of times material handled 200 15 12000 Rs.5.00 Direct labor cost per hour Overhead Costs: Set up Purchasing Material handling 280,000 145,000 130,000 660,000 1,215,000 Machines Total Machine hours are 600,000 hours. Required: a) Find out the production unit cost of product X and product Y. b) Using conventional product costing machine hour overhead absorption rate. A

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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