McElligot Doll compamany had the following overhead costs and production in two months. dolls are identical to each other.Actual Overheads in March R12000 and April R1200. Number of dolls in March 3000 and April 2000. Calculate the overhead costs per doll per month.
what type of costing is McElligott using? what is the main issue of using this type of costing
A.For March the unit overhead cost per doll is $4 (12,000/3,000). For April the unit overhead cost per doll is $6 (12,000/2,000).
B.The type of costing being used here is Actual Costing. The problem with assigning actual overhead to units is that the number of units produced per month varies. This makes the costs of the dolls different because of the different number of units produced. The doll produced in April will be more expensive because of this.
McElligot Doll compamany had the following overhead costs and production in two months. dolls are identical...
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