Fun Bakery has three shops in town Total Budgeted overhead Units produced Per unit Direct materials Direct wages You are required to calculate for each department: a) The absorption rate per unit b) Cost per unit Shop 1 € 250 € € 40.000 Shop 2 € 365 25.000 € 60.000 € 10.000 Shop 3 € 423 35.000 € 40.000 € 25.000 14.000 80.000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
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Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...
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Fun Bakery has three shops in town
Total
Budgeted overhead
Units produced
Per unit
Direct materials
Direct wages
You are required to calculate for each department:
a) The absorption rate per unit
b) Cost per unit
Shop 1
€
250
€
€
Shop 2
40.000 €
365
25.000 €
60.000 €
10.000
Shop 3
€
423
35.000 €
40.000 €
25.000
14.000
80.000
Transcribed Image Text:Fun Bakery has three shops in town Total Budgeted overhead Units produced Per unit Direct materials Direct wages You are required to calculate for each department: a) The absorption rate per unit b) Cost per unit Shop 1 € 250 € € Shop 2 40.000 € 365 25.000 € 60.000 € 10.000 Shop 3 € 423 35.000 € 40.000 € 25.000 14.000 80.000
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