Fast Ltd., manufactures three types of products A, B and C following ABC system. During a period the company incurred ₹73,000 as inspection cost and its was worked for 10, 20 and 9 production runs respectively for produc
CS Executive · Cost and Management Accounting · PYQS · December 2017
Fast Ltd., manufactures three types of products A, B and C following ABC system. During a period the company incurred ₹73,000 as inspection cost and its was worked for 10, 20 and 9 production runs respectively for producing products A, B and C. The inspection hours required per production run was 3, 4 and 4 respectively. The total inspection costs for product B under ABC system was: (A) ₹15,000 (B) ₹40,000 (C) ₹18,000 (D) ₹24,000
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Activity Based Costing (ABC)
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