Production set up costs - 3,50,000; Total production is 50,000 units of each of the products X and Y; Production in each run is 2,000 units of X or…

CA Intermediate · Cost and Management Accounting · MTP · May 2025
Production set up costs - 3,50,000; Total production is 50,000 units of each of the products X and Y; Production in each run is 2,000 units of X or 5,000 units of Y. Company uses activity-based costing to calculate the unit cost of its products. Set-up cost per unit of Y will be
(A) ₹ 4.00
(B) ₹ 2.40
(C) ₹ 2.00
(D) ₹ 3.60

Suggested Answer and Working Notes:

Correct Answer: Option (C)

₹ 2.00

Topics: Activity Based Costing

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