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  • Activity Based Costing

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    David dhakad
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    The document outlines standard costs and production details for three products - A, B, and Z - produced by ABC Co. Ltd. It provides information on direct material and labor costs per unit, labor and machine hours per unit, purchase requisitions, and machine set-ups for each product. It also shares production overhead costs split between two departments - labor intensive Dept. X and machine intensive Dept. Y. Finally, it lists two overhead activities and their associated costs and activity levels.

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    The document outlines standard costs and production details for three products - A, B, and Z - produced by ABC Co. Ltd. It provides information on direct material and labor costs per unit, labor and machine hours per unit, purchase requisitions, and machine set-ups for each product. It also shares production overhead costs split between two departments - labor intensive Dept. X and machine intensive Dept. Y. Finally, it lists two overhead activities and their associated costs and activity levels.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    25 views5 pages

    Activity Based Costing

    Uploaded by

    David dhakad
    The document outlines standard costs and production details for three products - A, B, and Z - produced by ABC Co. Ltd. It provides information on direct material and labor costs per unit, labor and machine hours per unit, purchase requisitions, and machine set-ups for each product. It also shares production overhead costs split between two departments - labor intensive Dept. X and machine intensive Dept. Y. Finally, it lists two overhead activities and their associated costs and activity levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 5

    ACTIVITY BASED COSTING

    ABC Co. Ltd. produces three products A,B and Z for which the standard cost and quantities per unit are as follows:

    PRODUCTS
    A B Z
    Output (units) 10,000 20,000 30,000
    Direct material per 50 40 32
    unit(Rs)
    Direct labour per unit(Rs) 30 40 48
    Labour hours per unit 3 4 5
    Machine hours per unit 4 4 7
    No. of purchase 600 900 1000
    requisitions

    No. of machine set ups 120 130 150


    Production overhead split by department:
    X – Rs.12,00,000
    Y – Rs. 15,00,000
    Dept X is labour intensive and Dept Y is machine intensive
    Total labour hours in Dept X = 2,00,000
    Total machine hours in Dept. Y = 5,00,000
    Production overhead split by activity:
    Receiving and inspection = Rs.14,00,000
    Production scheduling/set up = Rs.13,00,000

    No. of batch received/inspected - 2500


    No. of batches for scheduling/set up - 400

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