Illustration 9-OAR per unit RS Ltd is a manufacturing company producing product P, which has the following cost card. GHS Direct Material (1kg @GHS 5 per kg) Direct Labour (2hrs @GHS 5 per hr) Direct Expenses Heating Power Maintenance 5 10 16 RS ltd produces and sells 1,000 units in a month. RS absorbed overheads based on the number of units produced. Based on past experience, RS Itd estimates its monthly oerheads will be as follows: GHS 1 3,000 2,000 500 5,500 Required: Calculate the overhead allocated to each unit of Product P and the cost per unit
Illustration 9-OAR per unit RS Ltd is a manufacturing company producing product P, which has the following cost card. GHS Direct Material (1kg @GHS 5 per kg) Direct Labour (2hrs @GHS 5 per hr) Direct Expenses Heating Power Maintenance 5 10 16 RS ltd produces and sells 1,000 units in a month. RS absorbed overheads based on the number of units produced. Based on past experience, RS Itd estimates its monthly oerheads will be as follows: GHS 1 3,000 2,000 500 5,500 Required: Calculate the overhead allocated to each unit of Product P and the cost per unit
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...
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Transcribed Image Text:Illustration 9-OAR per unit
RS Ltd is a manufacturing company producing product P, which has the following cost card.
GHS
Direct Material (1kg @GHS 5 per kg)
Direct Labour
(2hrs @GHS 5 per hr)
Direct Expenses
Heating
Power
Maintenance
5
10
16
RS ltd produces and sells 1,000 units in a month. RS absorbed overheads based on the
number of units produced. Based on past experience, RS ltd estimates its monthly oerheads
will be as follows:
GHS
1
3,000
2,000
500
5,500
Required: Calculate the overhead allocated to each unit of Product P and the cost per unit
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