Question 2. A company manufactures two products, X and Y, for which the following information is available Particulars Budgeted production (units) Product X 4,000 Product Y 6,000 Labour hours per unit 5 8 Number of production runs required 4 6 Number of inspections during production 3 2 Production set-up costs OMR 350,000 Inspection costs OMR 150,000 Total overhead costs OMR 500,000 Using Activity Based Costing, calculate the budgeted overhead cost per unit for Product X and Product Y.
Question 2. A company manufactures two products, X and Y, for which the following information is available Particulars Budgeted production (units) Product X 4,000 Product Y 6,000 Labour hours per unit 5 8 Number of production runs required 4 6 Number of inspections during production 3 2 Production set-up costs OMR 350,000 Inspection costs OMR 150,000 Total overhead costs OMR 500,000 Using Activity Based Costing, calculate the budgeted overhead cost per unit for Product X and Product Y.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 2.
A company manufactures two products, X and Y, for which the following information is available
Particulars
Budgeted production (units)
Product X
4,000
Product Y
6,000
Labour hours per unit
5
8
Number of production runs required
4
6
Number of inspections during production
3
2
Production set-up costs
OMR 350,000
Inspection costs
OMR 150,000
Total overhead costs
OMR 500,000
Using Activity Based Costing, calculate the budgeted overhead cost per unit for Product X and Product Y.
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