Student Doubts Forum

problem 10

problem 10

by María Camila Lopez Fontana -
Number of replies: 1

Within the exercise, we were able to find the Manufacturing Overhead (MOH) for both products:

  • For Product A, the MOH is 30,750,000 €.
  • For Product B, the MOH is 1,025,000 €.

Raw Material W, the costs are as follows:

  • For Product A, the total cost of Raw Material W is 1,440,000 €.
  • For Product B, the total cost of Raw Material W is 48,000 €.
However, I am still missing the cost for Raw Material Z, which I do not know how to distribute it. Can you please help me?

Thanks

In reply to María Camila Lopez Fontana

Re: problem 10

by Madalena dos Santos de Paiva -
Hello María,

As you can see in the first table of the exercise, product B is the only product that uses raw material Z. This makes things simpler—you don’t need to "distribute" the costs of raw material Z between products, as it is exclusively used for product B and not for product A.

Hope this helps!

Madalena Paiva