Problems on ABC Costing: Part 3

Chapter 1: Specialist cost and management account techniques Topics: Problems on ABC Costing- Part 3 Subject: Performance Management #BBA #Bcom Performance Management Notes: Question 3: The budgeted overhead & cost driver volume of Star ltd are as follows. Cost pool. Cost. Cost driver. Volume Material. procurement. 4,05,000 No of orders 900 Machine set ups 3,59,100 No of set ups. 450 Maintenance 2,40,000 Maintainance Hr 3000 Quality control. 1,40,000. No of inspections. 700 Machinery 4,80,000. No of machine hours. 24,000 The company has produced a batch of 2500 units of AZ. Material cost - 1,10,000 Labour cost - 1,90,000 The activities are as follows : Material order - 21 Set up of machine - 19 Maintainance hours - 510 No of inspections - 26 Machine hours - 1300 hrs Find the cost per unit under ABC method of costing.The company has produced a batch of 2500 units of AZ. Material cost - 1,10,000 Labour cost - 1,90,000 The activities are as follows : Material order - 21 Set up of machine - 19 Maintainance hours - 510 No of inspections - 26 Machine hours - 1300 hrs Find the cost per unit under ABC method of costing. Audio credits: https://www.instagram.com/drew_sorbet/