The 2020 cost pool budget for Mandeep Industries that produces television sets is as follows: Machine set up related costs 118200 Engineering related    82200 Quality Control   100400       300800 Budgeted activity levels for 2020   Direct labour hours   9600 Quality inspections   14700 Machine Set-up hours   1260 Engineering changes   1420 For a particular production run of 2,000 LED TVs, the activityt levels were as follows: Direct labour hours   2350 Quality inspections   2300 Machine Set-up hours   960 Engineering changes   490 Required: Calculate the overhead cost of 1 TV set using ABC to apply overheads

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The 2020 cost pool budget for Mandeep Industries that produces television sets is as follows:

Machine set up related costs 118200
Engineering related    82200
Quality Control   100400
      300800
Budgeted activity levels for 2020  
Direct labour hours   9600
Quality inspections   14700
Machine Set-up hours   1260
Engineering changes   1420

For a particular production run of 2,000 LED TVs, the activityt levels were as follows:

Direct labour hours   2350
Quality inspections   2300
Machine Set-up hours   960
Engineering changes   490

Required:

Calculate the overhead cost of 1 TV set using ABC to apply overheads

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