Assignment (2)

_{XXX Ltd manufactures three different types of products (A, B & C). The cost and output details of the company for the year 2015 will be as follows:}

	Product A	Product B	Product C
Direct Materials cost per unit of output	$ 100	$ 120	$ 140
Direct Labour cost per unit of output	$ 80	$ 80	$ 120
Output (units)	500 units	500 units	1000 units

Manufacturing Overheads for Apex Ltd for the year 2015 is expected to be as follows:

Overheads	Cost Driver	Overheads ($)
Inspection	Number of inspections	100,000
Set ups	Number of set ups	200,000
Materials movements	Number of material moves	80,000
Material Receiving	Number of material order	120,000
Total overheads		500,000

The activity details for all the products are as below:

Activities	Product A	Product B	Product C	Total
Inspections	50	70	80	200
Set ups	10	20	20	50
Material movements	50	100	50	200
Number of materials orders	20	40	20	80

Required

Prepare the product cost statement (cost per unit) for products A, B and C using Activity Based Costing (ABC)