Sir John,
Can you please tell me that,
Can Cost drivers for materials handling and dispatched costs would be number of orders handled
ACCA Forums
PMActivity based costing
number of orders handled for material handling and number of orders dispatched to custmors or to production,can be used i think.
Ok thanks
Hello!
Could you please tell me how to calculate Set-up costs in example 1 (b). We know total sum 90.000. I see 36.000 per A 46.800 per B and 7.200 per C products in answers.but I can`t understand how to calculate((
Thx a lot in advance!
Oh! I` ve got it)) We should summarize the number of set-ups (!)
Liborakina
Total setup cost \num of setup cost
$90000/25 = $3600
For A
Cost per setup *num of setup of (A)
$3600*10 = $36000
For B
Cost per setup * num of setup of (B)
$3600*13 = $46800
FOR C
cost per setup *num of setup (C)
$3600*2= $7200
FOR futher reference you can see lectures on activity based costing sir John has already explained in his lecture.
*future * reference
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