Al Mahar LLC produces three types of products-Baby wipes, Baby oil and Baby shampoo. Baby wipes requires 200 purchase orders. Baby oil requires 360 purchase orders and Baby shampoo requires 240 purchase orders. The total purchase related costs amounts to RO 260,000. The purchase related overhead assigned to each of the three products were:   a. RO 260,000 for Baby wipes; RO 117,000 for Baby oil; RO 312,000 for Baby shampoo b. RO 78,000 for Baby wipes; RO 117,000 for Baby oil; RO 65,000 for Baby shampoo c. RO 312,000 for Baby wipes; RO 117,000 for Baby oil; RO 260,000 for Baby shampoo d. RO 65,000 for Baby wipes; RO 117,000 for Baby oil; RO 78,000 for Baby shampoo

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
icon
Related questions
Question

Al Mahar LLC produces three types of products-Baby wipes, Baby oil and Baby shampoo. Baby wipes requires 200 purchase orders. Baby oil requires 360 purchase orders and Baby shampoo requires 240 purchase orders. The total purchase related costs amounts to RO 260,000. The purchase related overhead assigned to each of the three products were:


 

a.

RO 260,000 for Baby wipes; RO 117,000 for Baby oil; RO 312,000 for Baby shampoo

b.

RO 78,000 for Baby wipes; RO 117,000 for Baby oil; RO 65,000 for Baby shampoo

c.

RO 312,000 for Baby wipes; RO 117,000 for Baby oil; RO 260,000 for Baby shampoo

d.

RO 65,000 for Baby wipes; RO 117,000 for Baby oil; RO 78,000 for Baby shampoo

Expert Solution
steps

Step by step

Solved in 4 steps

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
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College