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Activity based costing approach

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Reference no: EM132438330

AB ltd manufacturing two products the A1 and the A2. Data for last period were as follows:

A1. A2

production output (unit). 150. 400

Batch size. (units). 50. 20

Set up cost incurred = £6,900

What are the set -up costs to be allocated to products A1 and A2 using an activity based costing approach?

Select one

product A1= £500 and product A2 =£1500

product A1= £900 and product A2 = £6000

product A1=£800 and product A2=£2440

product A1=£1000 and product A2 =£7000

Reference no: EM132438330

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