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Sir John,
Can you please tell me that,Can Cost drivers for materials handling and dispatched costs would be number of orders handled
number of orders handled for material handling and number of orders dispatched to custmors or to production,can be used i think.
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!
Liborakina
Total setup cost \num of setup cost
$90000/25 = $3600For A
Cost per setup *num of setup of (A)
$3600*10 = $36000For B
Cost per setup * num of setup of (B)
$3600*13 = $46800FOR C
cost per setup *num of setup (C)
$3600*2= $7200FOR futher reference you can see lectures on activity based costing sir John has already explained in his lecture.
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