1.The Epsilon Company produces four products - A, B, C and D. It is estimated that 1000 units of each

of these products can be sold in June 2013 at the following selling prices, 90, 100, 120 and 90,

respectively.

An activity-based costing system has been use to estimate the overheads to be included in the product

costs of each of these products. The total overheads for June 2013 are expected to be 50,000. The

following are the product costs and the amount of overhead which is included:

Product Product Product Product A B C D Product cost per unit 36 48 60 46 Overheads (included in above) 6 8 10 6