Homework Help is Here – Start Your Trial Now!
Business
Accounting
A company has decided to use ABC absorption costing for its overheads. It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver. Cost Pool Cost Driver Rate per Cost Driver Quality Costs Inspections £4175 Setup Costs Setups £3495 Machine Costs Batches £47 Product Z has 10 inspections, 25 setups and 100 batches. The company produced 10,000 units of Z. What is the overhead absorption cost per unit of Z? Round your answer at the end to 2 decimal places. Select one: a. £1338.25 O b. £0.77 O c. £13.38 O d. £12.92

A company has decided to use ABC absorption costing for its overheads. It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver. Cost Pool Cost Driver Rate per Cost Driver Quality Costs Inspections £4175 Setup Costs Setups £3495 Machine Costs Batches £47 Product Z has 10 inspections, 25 setups and 100 batches. The company produced 10,000 units of Z. What is the overhead absorption cost per unit of Z? Round your answer at the end to 2 decimal places. Select one: a. £1338.25 O b. £0.77 O c. £13.38 O d. £12.92

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter6: Process Costing
Section: Chapter Questions
Problem 45E: Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent...
See similar textbooks
icon
Related questions
Topic Video
Question
A company has decided to use ABC absorption costing for its overheads. It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver. Cost Pool Cost Driver Rate per Cost Driver Quality Costs Inspections £4175 Setup Costs Setups £3495 Machine Costs Batches £47 Product Z has 10 inspections, 25 setups and 100 batches. The company produced 10,000 units of Z. What is the overhead absorption cost per unit of Z? Round your answer at the end to 2 decimal places. Select one: O a. £1338.25 O b. £0.77 O c. £13.38 O d. £12.92
Transcribed Image Text:A company has decided to use ABC absorption costing for its overheads. It has worked out that there are three main cost pools, assigned them cost drivers and found out a rate per cost driver. Cost Pool Cost Driver Rate per Cost Driver Quality Costs Inspections £4175 Setup Costs Setups £3495 Machine Costs Batches £47 Product Z has 10 inspections, 25 setups and 100 batches. The company produced 10,000 units of Z. What is the overhead absorption cost per unit of Z? Round your answer at the end to 2 decimal places. Select one: O a. £1338.25 O b. £0.77 O c. £13.38 O d. £12.92
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS