Gemma Co uses activity based costing to divide overheads between its two products and has the following budgeted information

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
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Gemma Co uses activity based costing to divide overheads between its two products and has the following budgeted information

 

S

T

Production level

80,000

120,000

Set-ups per batch

4

2

Batch size

5,000

4,000

Budgeted set-up costs are £74,400

Calculate the cost per set-up and the set-up cost per unit for product T.

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