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Paragraph 1992 Styles Question 2: (40 marks) Company Delta manufactures four products which involve ordering materials, setting up machinery and handling activities. The total indirect

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Paragraph 1992 Styles Question 2: (40 marks) Company Delta manufactures four products which involve ordering materials, setting up machinery and handling activities. The total indirect costs of each of these activities are as follows. $ Handling Ordering Set-up Total Other information relating to the products is as follows: 90,000 30,000 60,000 180.000 Products Handling hours 140 Y Number of units 1,000 2,800 3,600 6,000 Number of orders Set-ups 100 600 60 500 30 300 10 200 140 Z 80 W 60 Required: 1. Prepare a schedule table showing the cost of each activity for each of ordering, handling, and set- up./ 9 marks) 2. Fill in the blank in the following table & calculate the indirect cost'unit to be allocated to each of the four products (total 21 marks - 28 items &.75 marks for each item in the table). X(S) Y($) z ($) W($) Total ($) Total ordering Cost/product Total Set-up cost /product Total handling cost/product Total Number of No need to Fill here units Indirect Cost per No need to unit Fill here 3-Discuss two advantages & 2 disadvantages of using the ABC technique. (10 marks)

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