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Please help me step-by-step to solve the question. Thank you CID Itd makes plastic components for the car industry. The following budgeted information is available
Please help me step-by-step to solve the question. Thank you
CID Itd makes plastic components for the car industry. The following budgeted information is available for three of their key plastic components: Product W RM per unit Selling price 200 Direct Material 50 Direct Labor 30 Units produced and 10,000 sold Product X RM per unit 183 40 35 15,000 Product Y RM per unit 175 35 30 18,000 The total number of activities for each of the three products for the period is as follows: 1200 No. of inspection in hours 1800 2000 No. of set up 240 260 300 Overhead costs have been analysed as follows: Receiving/ inspecting quality assurance Production scheduling machine set up RM1,400,000 RM1,200,000 Required: 1.Calculate the budgeted profit per unit for each of the three products using ABC budgeting. 2. If the budgeting has been traditionally calculated on the basis of direct labor cost, calculate the budgeted profit per unit for each of the three productsStep by Step Solution
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