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2 Question 1 (13 marks) Windhoek Manufacturers produces two products, Amber and Black. The following cost estimates have been prepared using the traditional absorption costing

2 Question 1 (13 marks) Windhoek Manufacturers produces two products, Amber and Black. The following cost estimates have been prepared using the traditional absorption costing approach. Selling price per unit Production costs per unit: Material costs Direct labour costs Manufacturing overhead cost Profit per unit Additional information. Estimates sales demand Machine hours per unit Amber Black N$ N$ 69 93 27 24 12 624 15 18 36 2586 Amber 9 000 Black 12 000 0.75 1.20 Marks Required Sub- Total total 1.1 Calculate the return per machine hour for each product if through put accounting approach is used. 5 5 1.2 Calculate the profit for the period, using a throughput accounting approach, assuming the company priorities Black Total marks 8 00 13 13 Page 13 of 16

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