(a) The following information relates to the budget for the year ahead.
|
Production overhead cost budget |
|
|
|
£ |
|
Machinery costs |
285,000 |
|
Set up costs |
235,000 |
|
Purchasing costs |
300,000 |
|
Total production overheads |
820,000 |
The following table shows the total budgeted activities of the company (it manufactures many different types of products) and the details relating to the manufacture of two product lines:
S and T.
|
Data |
Total |
Product S |
Product T |
|
Machine hours |
95,000 |
2 per unit |
1 per unit |
|
Number of production runs |
235 |
20 |
5 |
|
Purchase orders |
5,000 |
100 |
100 |
|
Production quantities of S & T |
|
5,000 units |
20,000 units |
Calculate, using activity based costing, the production overhead costs that would be attributed to one unit of Product S and one unit of Product T.