Activity Based Costing

Zana · October 2018

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 · October 2018

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 · October 2018

thank you @paulawelsh !

paulawelsh · October 2018

Your welcome

Activity Based Costing

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