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Hi,
Please explain for
(c) Summary
Set-ups Material Movements Inspections
Product D 100 16 200
C 92 17 144
P 69 12 96Why set-ups, material movements & inspections for each products showed the figures as 100, 16 & 200?
Thanks for your help.
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 = $200Material movement=100*$200=$20000
setup=16*$200=$3200
Inspection=200*$200=$40000Total=20000+40000+3200=$63200
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