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

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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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