AJ manufacturing company produces about one hundred products. Its largest selling product is product X...
70.2K
Verified Solution
Link Copied!
Question
Accounting
AJ manufacturing company produces about one hundred products. Its largest selling product is product X and its smallest is product Y. relevant data is given below:
Particulars
Product X
Product Y
Total product
Units produced per annum
Material cost per unit
Direct labor per unit
Machine time per unit
No. of set ups per unit
No. of purchase orders for material
No. of times material handled
Direct labor cost per hour
Overhead Costs:
Set up
Purchasing
Material handling
Machines
Total Machine hours are 600,000 hours.
5000
Rs.1
15 min
1 hour
24
36
200
1000
Rs.1
15 min
1 hour
2
6
15
50,000
500
2800
12000
Rs.5.00
280,000
145,000
130,000
660,000
1,215,000
Required:
a)Find out the production unit cost of product X and product Y.
b)Using conventional product costing machine hour overhead absorption rate.
c)Using ABC (Activity Base Costing ) compare the results of methods and comment.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.