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Currently the company uses the traditional method of allocating indirect overheads but is considering using the ABC method for increasing the accuracy. The company's indirect

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Currently the company uses the traditional method of allocating indirect overheads but is considering using the ABC method for increasing the accuracy. The company's indirect overheads are as follows: Activities associated with the overheads are: Financinl Manadement Financial Managemant-1/Aaidnaent BSAC2102/BAH2109/2110 Required: a) Calculate the profit per unit for the three products based on the company's current labour hours based overhead method. b) Calculate the profit per unit for the three products using the principles of ABC c) Comment on the comparative overhead cost per unit for the two products under ABC, and the comparative total costs per unit under traditional costin and ABC and Explain your reasons for choosing the bases of overhead allocation Currently the company uses the traditional method of allocating indirect overheads but is considering using the ABC method for increasing the accuracy. The company's indirect overheads are as follows: Activities associated with the overheads are: Financinl Manadement Financial Managemant-1/Aaidnaent BSAC2102/BAH2109/2110 Required: a) Calculate the profit per unit for the three products based on the company's current labour hours based overhead method. b) Calculate the profit per unit for the three products using the principles of ABC c) Comment on the comparative overhead cost per unit for the two products under ABC, and the comparative total costs per unit under traditional costin and ABC and Explain your reasons for choosing the bases of overhead allocation

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