Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) and Kakaduro (K). The following data related to the products for the period. H K P Total GH¢‘000 GH¢‘000 GH¢‘000 GH¢‘000 Direct Material 150 240 200 590 Direct Labour Cost 14.4 24 54 92.4 Overheads Machine settings 26 Overhead Processing 64 Warehouse Cost 93 Energy to run machine 42 Shipping 36 A consultant, Mr. P. S. Initiative recommended the following after a detailed study of the company’s production process. ACTIVITY COST DRIVER ACTIVITY LEVEL H K P a. Machine setup No. of Production runs 22 34 44 b. Sales order processing No. of sales received 400 600 600 c. Warehouse cost No of units held in inventory 200 200 400 d. Energy
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Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) and Kakaduro (K...
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