Price

Less Marginals
D.L
D.M
Spoilage
Direct Dep

C.M/Unit

4
0.8
0.4
0.04
0.12
1.36
198000

3
0.76
0.4 BTC C&P
0.038 (4 , 3)
0.1
1.298
212750

Brass
machine hours
production batch size
Sales(unit)
per unit data
Selling price
DM
DL
OH( based on DL)

c.

White

25
1000

10
1000

30000

50000

40000

hours per batch

DL
machine hours
setup hours
inspection hours

Chrome

25
1000

$40
8
15
12

$20
4
3
3

$30
8
9
9

40
25
1
30

10
25
0.5
20

30
10
1
20

5
we are finding overhead
total number of batches produced in a year are
total number of setup hours for brass
total number of inspection hour for brass for 30 batch
setup cost =
inspection
OVER HEAD

4.9
4.5
9.4

Activity
DLHrs
Machine Hours
Setups
inspections

30
30
4500

batch
hours
1000
40
x
2900

Machine Hours

nspections

72500

b.
Activity cosoverhead Activity levunits
600
2900 hours
25
2400 hours
4900
465500
95 setup hours
150
405000
2700 inspection hours
870500

What I have done so far. fo

requirement C.
to compute overheads for A
I have
1-found activity cost driver
4900 for setup and 150 for
are for per batch.
2-(activity cost per unit x se
hours)/1000( since 1000 are
per batch).
similarly inspection are
activity cost of inspection x
hour/ units produced per ba

at I have done so far. for

uirement C.
compute overheads for ABC costing
ave
ound activity cost driver that is
00 for setup and 150 for insecption
for per batch.
activity cost per unit x setup
urs)/1000( since 1000 are the units
batch).
milarly inspection are
ivity cost of inspection x inspection
ur/ units produced per batch.