The company produces three products namely pen , pencil and paper . The production and sales volume of pen is 15000 units, pencil is 12,000 units and paper is 10,000 units. Total annual overhead spent on delivery RO 55,000 . Number of deliveries for pen 23 , pencil 48 and paper 39. What is the delivery cost driver rate for the company? a . RO 500 b . RO 37,000 C. RO 110 d. RO 5,000
The company produces three products namely pen , pencil and paper . The production and sales volume of pen is 15000 units, pencil is 12,000 units and paper is 10,000 units. Total annual overhead spent on delivery RO 55,000 . Number of deliveries for pen 23 , pencil 48 and paper 39. What is the delivery cost driver rate for the company? a . RO 500 b . RO 37,000 C. RO 110 d. RO 5,000
Chapter1: Financial Statements And Business Decisions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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The company produces three products namely pen , pencil and paper . The production and sales volume of pen is 15000 units, pencil is 12,000 units and paper is 10,000 units. Total annual overhead spent on delivery RO 55,000 . Number of deliveries for pen 23 , pencil 48 and paper 39.
What is the delivery cost driver rate for the company?
a . RO 500
b . RO 37,000
C. RO 110
d. RO 5,000
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