A company makes two different types of pen drives XZ and YZ. The total expenses during the period as shown by the books – 600 of XZ and 800 of YZ – are as follows:
|
Material |
99,000 |
|
Direct wages |
6,000 |
|
Stoves overheads |
9,900 |
|
Running expenses of machine |
2,200 |
|
Depreciation |
1,100 |
|
Labour amenities |
750 |
|
Works general |
15,000 |
|
Administration and selling |
13,400 |
|
Other date available to you |
XZ : YZ |
|
Materials cost ratio per unit |
1 : 2 |
|
Direct labour ratio per unit |
2 : 3 |
|
Machine utilization ratio per unit |
1 : 2 |
Calculate the cost of each pen drive per unit giving reasons for the basis of apportionment by you.