A company manufacturing two products furnishes the following data for a year:
|
Product |
Annual Output |
Total Machine |
Total Number ofPurchase Orders |
Total Number of Setups |
|
A |
10,000 |
15,000 |
120 |
20 |
|
B |
40,000 |
85,000 |
480 |
30 |
The annual overheads are:
|
Volume-related activity costs |
: 4,50,000 |
|
Setup-related costs |
: 9,00,000 |
|
Purchase-related costs |
: 6,50,000 |
You are required to calculate the cost per unit of product A and B based on:
- Traditional method of charging overheads
- Activity-based costing method.