Z Company uses activity-based costing for its product Apex and Ultimo. The total estimated annual overhead cost for set up was RO 440,000 andthe expected activity was 4000 set ups for the period. If product Apex requires 1800 set ups, the amount of overheads allocated to product Apexfor set up cost would be:O a. RO 198,000O b. RO 180,000Oc. RO 298,000O d. RO 280,000Which among the following is not an activity?O a. A customerO b. Placing purchase orderO c. Machine set upO d. After sales service

Estimated annual overhead cost for set up (A) RO 440,000 Number of set ups (B) 4,000 Overhead…

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amount of overheads allocated to product Apex

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Z Company uses activity-based costing for its product Apex and Ultimo. The total estimated annual overhead cost for set up was RO 440,000 and
the expected activity was 4000 set ups for the period. If product Apex requires 1800 set ups, the amount of overheads allocated to product Apex
for set up cost would be:
O a. RO 198,000
O b. RO 180,000
Oc. RO 298,000
O d. RO 280,000
Which among the following is not an activity?
O a. A customer
O b. Placing purchase order
O c. Machine set up
O d. After sales service

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