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    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)

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