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A company uses activity based costing to divide overheads between its three products and has the following budgeted information   B U G Production level 30,000 20,000 30,000 Batch size 5,000 4,000 6,000  Machine set up costs are budgeted at £1,200,000 for the period and are related to the number of batches. Calculate the cost per set-up and the set-up costs that would be attributed to each unit of the three products.

A company uses activity based costing to divide overheads between its three products and has the following budgeted information   B U G Production level 30,000 20,000 30,000 Batch size 5,000 4,000 6,000  Machine set up costs are budgeted at £1,200,000 for the period and are related to the number of batches. Calculate the cost per set-up and the set-up costs that would be attributed to each unit of the three products.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3E: Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and...
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A company uses activity based costing to divide overheads between its three products and has the following budgeted information

 

B

U

G

Production level

30,000

20,000

30,000

Batch size

5,000

4,000

6,000

 Machine set up costs are budgeted at £1,200,000 for the period and are related to the number of batches.

Calculate the cost per set-up and the set-up costs that would be attributed to each unit of the three products.

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