Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Decisions and Control
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Activity Based Costing

ZanaZana AAT Student Posts: 27
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.

Comments

  • paulawelshpaulawelsh AAT Student, AATQB Posts: 14
    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
  • ZanaZana AAT Student Posts: 27
    thank you @paulawelsh !
  • paulawelshpaulawelsh AAT Student, AATQB Posts: 14
    Your welcome
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