BPP revision - 4 Triple (Pilot Paper) pg 5-6

BBB12y ago

Hi, Please explain for (c) Summary Set-ups Material Movements Inspections Product D 100 16 200 C 92 17 144 P 69 12 96 Why set-ups, material movements & inspections for each products showed the figures as 100, 16 & 200? Thanks for your help.

Ffaizi9512y ago#1

These are material movements and all other setups etc are given in per product . so these will be used to charge oh per product after finding overhead per activity and then multiply by the 100 for product D 92 for C and 69 for P Example : Suppose: Overheads for D : $63200 cost driver in total : 100+16+200=316 Overhead per unit: 63200/316 = $200 Material movement=100*$200=$20000 setup=16*$200=$3200 Inspection=200*$200=$40000 Total=20000+40000+3200=$63200

BBB12y ago#2

Thanks for your answer. May I know how to get the 100 set ups, 16 material movements & 200 inspections for product D?

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