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What is the product cost per unit for product n

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Reference no: EM132562200

A company that produces two products has the following information

                                PRODUCT N                    PRODUCT O

                         Direct material                       Direct material

                             N$ 50                                 N$ 40

Direct labor @ N$ 10 per hour                 Direct labor @ N$ 10 per hour

                        N$ 30                                      N$ 40

Production units                                      Production units

            10000                                              15000

Information relating to overheads:

Cost pool driver                            Total cost (N$)

Receiving acquisitions                   300000.00

Machine set ups                      500000 ( number of set ups)

Further information

                                                                                                                 Product N                           Product O

Number of purchase requisitions Number of Purchase requisitions          1800                              1200

Number of set ups Number of set ups                                                 240                               260

REQUIRED

Question 1: What is the product cost per unit for Product N using activity-based costing?

Reference no: EM132562200

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