Elandem PLC produces 20,000 units of Product L and 20,000 units of Product M. Under activity-based costing, €120,000 of costs are purchasing related. If 240 purchase orders are produced each period, and the number of orders used by each product is:
|
Product L |
Product M |
|
|
No. of orders |
80 |
160 |
- Calculate the per-unit activity-based cost of purchasing for Products L and M.
- Calculate the overhead recovery for purchasing costs if those costs were recovered over the number of units of the product produced.