2. M/s Priya Industries is in the business of manufacturing and selling lubricants. There are 4 types of products. The information available about each:
|
|
P1 |
P2 |
P3 |
P4 |
Total |
|
No. of units
produced |
1300 |
2000 |
1500 |
1200 |
6000 |
|
Labour Hours |
250 |
350 |
200 |
200 |
1000 |
|
No. of units in 1
packet |
2 |
5 |
3 |
3 |
13 |
|
Machine Hours |
260 |
450 |
360 |
180 |
1250 |
The total cost incurred is as under:
|
Fixed Costs |
Rs. |
|
Salaries and Wages |
2500000 |
|
Supervisor Cost |
75000 |
|
Factory Overheads |
1000000 |
|
Packaging costs |
600000 |
|
Total Costs |
4175000 |
It is assumed that the supervisor spends time in proportion of no.of units produced.
Calculate the cost of each unit of the products under:
a) Traditional Costing
b) ABC Costing
