a.Outline any four objectives of Management accounting and explain how management accounting differ from financial accounting. (10 marks)

b.Discuss why absorption costing can be used in a business. (6 marks)

c.The Little star co produces two products; X and Y both made from the same material. The company provided the following details.

A B

Production and sales 1500 units 1200 units

Selling Price $15 per unit $18 per unit

Raw material usage 2kg per unit 3kg per unit

Direct labour 0.1 hour per unit 0.15 hour per unit

Machin hour 0.5 hour per unit 0.7 hour per unit

$

Machin set up cost 26,550

Machine running cost 66,400

Procurement cost 48,000

Delivery cost 54,320

TOTAL Overhead cost 195,270

The price for raw materials is available throughout at $1.20 per kg. Direct labour is $ 14.80 per hour.

Required,

i. Calculate the cost per unit for product X and Y using absorption cost

ii. Give your recommendation on which product can be produced more and why.