Kindly solve accordingly PROBLEM-06A company manufacturing two products furnishes the following data for a year:ProductAnnual output (Units) Total machine-hoursA20,0005,00060,000B1,20,000The annual overheads are as under:Volume-related activity costsSetup-related costsTk. 5,50,000.008,20,000.00Purchase-related costs6,18,000.00You are required to calculate the cost per unit of each product A and B based on:(1) Traditional method of charging overheads.(ii) Activity based costing method.Total number ofpurchase orders160384Total number of set-ups2044

Activity-based costing is a costing method where the indirect cost is assigned to the jobs,…

Answered: You are required to calculate the cost…

You are required to calculate the cost per unit of each product A and B based on: (0) Traditional method of charging overheads. (1) Activity based costing method.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 30E: Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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