Calculate total cost and cost per piece for glass and plates using conventional and ABC methods, given direct material and labor costs.

April 26, 2026Accounting

ScanSolve AI Answer

April 26, 2026

Answer

Rs. 320,000$

Here's the calculation for total cost and cost per piece using both methods:

Part (a): Existing (conventional) method In the conventional method, overheads are allocated based on a single cost driver, which in this case will be total labor hours.

Step 1: Calculate Direct Materials Cost for each product.

Glass: $4,000 pieces \times Rs. 80/piece = Rs. 320,000$
Plate: $6,000 pieces \times Rs. 60/piece = Rs. 360,000

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Here's the calculation for total cost and cost per piece using both methods: Part (a): Existing (conventional) method In the conventional method, overheads are allocated based on a single cost driver, which in this case will be total labor hours.

Asked on April 26, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

ScanSolve AI AnswerAnswered on April 26, 2026

Here's the calculation for total cost and cost per piece using both methods: Part (a): Existing (conventional) method In the conventional method, overheads are allocated based on a single cost driver, which in this case will be total labor hours. Step 1: Calculate Direct Materials Cost for each product. Glass: 4,000 pieces × Rs. 80/piece = Rs. 320,000 Plate: $6,000 pieces × Rs. 60/piece = Rs. 360,000