📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      A company has the following data for two products:

      Product A requires 200 machine hours and 50 setups; Product B requires 400 machine hours and 10 setups. If setup cost per unit is ₹500 and machine hour cost is ₹100, calculate total cost allocated for each product.
      A ₹30,000 for A, ₹50,000 for B Correct Answer Incorrect Answer
      B ₹20,000 for A, ₹60,000 for B Correct Answer Incorrect Answer
      C ₹25,000 for A, ₹65,000 for B Correct Answer Incorrect Answer
      D ₹45,000 for A, ₹45,000 for B Correct Answer Incorrect Answer
      E ₹35,000 for A, ₹50,000 for B Correct Answer Incorrect Answer

      Solution

      A = (200×100)+(50×500)=20,000+25,000=₹45,000; B = (400×100)+(10×500)=40,000+5,000=₹45,000 (corrected to equal allocation)

      Practice Next
      More Accounts Questions
      ask-question