A company manufacturing two products furnishers the following data for a year:ProductAnnualTotalTotal numberTotalOutput (units)of purchaseordersmachinenumber ofhoursset upsA75012008515B450800115101200200020025The annual overheads are as under:Volume related activity costsRO 55000Set up related costsRO 120000Purchase related costsRO 85000TotalRO 260000You are required to calculate the cost per unit of each product A and B based on:a. Traditional method of charging overheadsb. Activity based costing method

Cost allocation is a process of assigning or allocating indirect cost to each and every unit using a…

A company manufacturing two products furnishers the following data for a year: Product Annual Output (units) Total Total number Total machine of purchase number of hours orders set ups A 750 1200 85 15 B 450 800 115 10 25 1200 The annual overheads are as under: 2000 200 Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method

A company manufacturing two products furnishers the following data for a year: Product Annual Output (units) Total Total number Total machine of purchase number of hours orders set ups A 750 1200 85 15 B 450 800 115 10 25 1200 The annual overheads are as under: 2000 200 Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6PB: During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of...

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During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
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