XYZ Company is producing three products Alpha, Beta and Gamma. The following overhead costs company incurred on manufacturing of three products: 1. Procurement Cost RO 170,000 2. Set up cost RO 270,000 Company produces 30,000 units of Alpha, 25,000 units of Beta and 20,000 units of Gamma. The labor hour consumed per unit as 0.15 minutes for Alpha, 0.10 minutes for Beta and 0.20 of gamma. If company applying traditional costing methods, the total overhead costs incurred on manufacturing of Beta are: - A. RO 180,000 B. RO 440,000 C. RO 160,000 D. RO 100,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1E: Kennedy Appliance Inc.s Machining Department incurred 450,000 of factory overhead cost in producing...
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XYZ Company is producing three products Alpha, Beta and Gamma. The following overhead costs company incurred on manufacturing of three products: 1. Procurement Cost RO 170,000 2. Set up cost RO 270,000 Company produces 30,000 units of Alpha, 25,000 units of Beta and 20,000 units of Gamma. The labor hour consumed per unit as 0.15 minutes for Alpha, 0.10 minutes for Beta and 0.20 of gamma. If company applying traditional costing methods, the total overhead costs incurred on manufacturing of Beta are: - A. RO 180,000 B. RO 440,000 C. RO 160,000 D. RO 100,000
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