Answer Happy

Question A3 A company manufactures two products, P and Q, for which the following information is available: Product P 1,000 18 10 20 Product Q 4,000 8 4 30 Budgeted production (units) Machine hours per unit Number of production runs required Number of inspections during production (for the budgeted production level) Production set-up costs (total) Quality control costs (total) Other overhead costs (absorbed on the basis of machine hours). £126,000 £72,000 £100,000 Based on Activity Based Costing techniques, what is the budgeted overhead cost of [4] Product P.