AB C an d Budgets

AB C an d Budgets

CJD Ltd manufactures plastic components for the car industry. The following budgeted information is available for three of their key plastic components:

Selling price	200	183	175
Direct material	50	40	35
Direct labour	30	35	30
Units produced and sold	10 000	15 000	18 000

The total number of activities for each of the three products for the period is as follows:

	W	X	Y
Number of purchase requisitions	1 200	1 800	2 000
Number of set ups	240	260	300

Overhead costs have been analysed as follows:

Receiving/inspecting quality assurance ÂŁ1 400 000

Production scheduling/machine set up ÂŁ1 200 000

Required

1 Calculate the budgeted profit per unit for each of the three products using activity based budgeting.

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