x y

DM 50 21.5 Abr
DL 20 8 MO
MO 661 80 ABR
PC 731 109.5
Profit 365.5 21.9
SP 1096.5 131.4
Output 1000 4000 5000

ASUMING BOTH X AND Y ARE EUALLY CONSUMING THE OVERHEAD

However single absorption

Production Centres Service Centres

MO X Y RD
Rent 200,000
Indirect labour 600,000
Depreciation ( X:Y 60% : 40%) 100,000
Lease Rent of an equipment used by X department 20,000
Overtime Premium in Department Y 10,000
Electricity 50,000
980,000
 1.     A ltd manufactures two products X and Y

980000 Direct material

196 ·       X: 50 per unit
·       Y: 21.50 per unit
Direct Labour
·       X:20 per unit
·       Y: 8 per unit
Manufacturing Overhead
·       Actual = 980,000
Output: OUTPUT QNTTY
·       X: 1000
·       Y:4000

Service Centres At present the company is absorbing the MO on the basis of output ( MO/Output).
M Pricing Policy
·       X = Cost + 50%
·       Y = Cost +20%
Required: Price and profit.
of output ( MO/Output).