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Answer following questions based on the scenario of 3S Inc.: 3S Inc. produces two types of supplements, Calcium and Calcium Citrate in bottles. Company produces
Answer following questions based on the scenario of 3S Inc.: 3S Inc. produces two types of supplements, Calcium and Calcium Citrate in bottles. Company produces 20,000 bottles of Calcium and 15,000 bottles of Calcium Citrate. You can find the data provided by the company about these two products as follows: $6 $8.5 $9.00 $9.00 Direct Materials per bottle Direct manufacturing laboy rate per bottle Direct labour hours per bottle 0.35 0.45 I $60,000 100 75 1 2 Set up costs Supplements bottles per patch Set up hour per patch Quality control costs Total indirect manufacturing costs Annual production $80,000 $140,000 20,000 15,000 Under the traditional costing system, the company uses a single indirect-cost pool and allocates costs to the two types of supplements on the basis of direct manufacturing labour-hours. Under this traditional system, determine product cost per bottle for each of the company's two products. (10 marks)
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