XYZ Company is producing three products Alpha, Beta and Gamma. The following overhead costs company incurred on manufacturing of three products: 1. Procurement Cost RO 170,000 2. Set up cost RO 270,000 Company produces 30,000 units of Alpha, 25,000 units of Beta and 20,000 units of Gamma. The labor hour consumed per unit as 0.15 minutes for Alpha, 0.10 minutes for Beta and 0.20 of gamma. If company applying traditional costing methods, the total overhead costs incurred on manufacturing of Beta are: - A. RO 180,000 B. RO 440,000 C. RO 160,000 D. RO 100,000
XYZ Company is producing three products Alpha, Beta and Gamma. The following overhead costs company incurred on manufacturing of three products: 1. Procurement Cost RO 170,000 2. Set up cost RO 270,000 Company produces 30,000 units of Alpha, 25,000 units of Beta and 20,000 units of Gamma. The labor hour consumed per unit as 0.15 minutes for Alpha, 0.10 minutes for Beta and 0.20 of gamma. If company applying traditional costing methods, the total overhead costs incurred on manufacturing of Beta are: - A. RO 180,000 B. RO 440,000 C. RO 160,000 D. RO 100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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XYZ Company is producing three products Alpha, Beta and Gamma. The following overhead costs company incurred on manufacturing of three products:
1. Procurement Cost RO 170,000 2. Set up cost RO 270,000
Company produces 30,000 units of Alpha, 25,000 units of Beta and 20,000 units of Gamma. The labor hour consumed per unit as 0.15 minutes for Alpha, 0.10 minutes for Beta and 0.20 of gamma. If company applying traditional costing methods, the total overhead costs incurred on manufacturing of Beta are: -
A. RO 180,000
B. RO 440,000
C. RO 160,000
D. RO 100,000
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