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ABC Co. makes 3 type of Audio player models 1.2,3 Monthly...

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Question

Accounting

ABC Co. makes 3 type of Audio player models 1.2,3 Monthly manufacturing cost (in Lakh)
incurred are as follows:
Direct Material Cost: 1000
Direct Labour Cost: 800
Testing Cost: 400
Machining Cost: 200
Rework cost: 150
Ordering cost: 350
~ Engineering Cost: 300
No. of Units (Basis)
Machining hours
Units reworked
Direct Material
No. of orders
Labour hours
+Testing hours
Engineering hours
Model 1
400
1250
1000
50
700
150
900
Model 2
500
5750
800
30
500
250
500
Model 3
300
2000
600
60
800
100
700
Calculate total cost of the product using Activity Based Costing (ABC) and Traditional method.

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