Problems on ABC Costing: Part 1

Chapter 1: Specialist cost and management account techniques Topics: Problems on ABC Costing- Part 1 Subject: Performance Management #BBA #Bcom Performance Management Notes: Question1: Company A has the following information applicable to its products: Total overheads = ₹ 1,00,000 Total machine hours = 50,000 hours Production A B Units of production 2500 5000 Mts cost / unit ₹ 30 ₹ 50 Labour cost / unit ₹ 20 ₹ 16 Machine hours / unit ₹ 10. ₹ 5 Overheads Set ups 300 50 Inspections 500 250 Goods movements 300 700 Overheads percentage : Set up costs - 35 % Inspections - 45 % Mts handling - 20 % What is the cost per unit of A & B Traditional Costing ABC costing Audio credits: https://www.instagram.com/drew_sorbet/