a company manufacturing two products furnishes the following data for a year 618494

A company manufacturing two products furnishes the following data for a year:

Product

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a company manufacturing two products furnishes the following data for a year 618494
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Annual Output
(Units)

Total Machine
Hours

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:

  1. Traditional method of charging overheads
  2. Activity-based costing method.
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