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Tactory uirect Laur-nours CH 15 Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7,000 50 1 8,000 Product z 3,000 150 1 4,000 Required: Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Product Y Product 2 Machining cost 45
Tactory uirect Laur-nours CH 15 Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7,000 50 1 8,000 Product z 3,000 150 1 4,000 Required: Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Product Y Product 2 Machining cost 45.6% Activate search O Chip
Expert Solution
Machine Hours Used for 50 setup by product 'Y' = 7,000 Hours
Machine Hours Used for 150 setup by product 'Z'= 3,000 Hours
Total Machine hours used.................................... =10,000 Hours
% of Machine Cost to be charged to Product 'Y' = 70 % (7000/10000*100)
% of Machine Cost to be charged to Product 'z' = 30 % (3000/10000*100)
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