Zeta Corporation has two products. They have the following annual production details: Total Costs Product A Product B 30 48 Total P 320,000 Equipment Set Ups Batch Inspections Units produced Machine hours per unit If Zeta originally allocated the aforementioned overhead costs based on 10 40 324,000 24 72 60,000 180,000 240,000 3 machine hours, how much would the total Product B production absorb more/(less) under AB Costing?
Zeta Corporation has two products. They have the following annual production details: Total Costs Product A Product B 30 48 Total P 320,000 Equipment Set Ups Batch Inspections Units produced Machine hours per unit If Zeta originally allocated the aforementioned overhead costs based on 10 40 324,000 24 72 60,000 180,000 240,000 3 machine hours, how much would the total Product B production absorb more/(less) under AB Costing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: Cost Accounting
Please answer the given questions. Thank you!
Transcribed Image Text:Zeta Corporation has two products. They have the following annual
production details:
Total Costs Product A Product B
Total
Equipment Set Ups
Batch Inspections
Units produced
Machine hours per unit
If Zeta originally allocated the aforementioned overhead costs based on
P 320,000
30
48
10
40
324,000
24
72
180,000 240,000
6|
60,000
3
machine hours, how much would the total Product B production absorb
more/(less) under AB Costing?
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