Question
Price Sakes Lad produces two types of food smokers: Gas and Electric. Below is the hdation about the two products Electric produced per year
Price Sakes Lad produces two types of food smokers: Gas and Electric. Below is the hdation about the two products Electric produced per year 2,000 5,000 Dit material cost per unit $150 $200 Det labour cost per unit $250 $450 The copy is commly wing the traditional costing method to allocate and apply the ged to the two products based on machine hours. The estimated total singed is $875,000 per year. string, the management has recommended using activity-based costing to is the products with a view to enhancing its competitive advantage in the market. has identified three cost pools, and the overhead for each cost pool Maline taps Matine pessing Mal 5 100,000 1.575.000 200.000 EL875.000 The beach of the above ust pools and their expected activities are as follows: Elestris Total Valits 100 150 250 BOST 10,500 15.000 140 500 epind Determine the total cost per unit for each product using the following overhead allocation Tilting method (marks marks) Ayed sating method your calculations in above, comment on the differences of product costing under the went one possible action to be taken by the management.
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