Q2) Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers. Activity Setup Cost (OMR) 250,000 Machine maintenance 75,000 Total indirect manufacturing costs 325,000 Particulars Product- pen Product- pencil Total( OMR) Direct labor hours 7000 3000 10,000 Number of setups Number of machine hours 1,200 70 30 100 3,800 5,000 The Deep manufactures plans to produce 500 units of pens and 1000 units of pencils. Compute the activity based cost per unit of each product.

Q2) Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers. Activity Setup Cost (OMR) 250,000 Machine maintenance 75,000 Total indirect manufacturing costs 325,000 Particulars Product- pen Product- pencil Total( OMR) Direct labor hours 7000 3000 10,000 Number of setups Number of machine hours 1,200 70 30 100 3,800 5,000 The Deep manufactures plans to produce 500 units of pens and 1000 units of pencils. Compute the activity based cost per unit of each product.

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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