Activity Based Costing

Zana

Hi,

I'm struggling with ABC costing, can somebody please explain it to me on the attached exercise?

Thank you in advance for your help!
z.

paulawelsh

For machine hours it's 10430/12 x4 (3,2,3)to share out between products.you do the same thing for all of them.
Set up costs are on production runs so 5250/420 x a=,120/20=6b=100/20=5c=80/ 20=4=120/20=6. You have to ascertain by the bottom chart what basis is apportionment

Zana

thank you @paulawelsh !

paulawelsh

Your welcome