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Product characteristics X Y Z Number of units 60,000 30,000 10,000 Direct labour hours 10,000 6,000 4,000 Machine hours 15,000 10,000 5,000 Number of production

Product characteristics X Y Z Number of units 60,000 30,000 10,000 Direct labour hours 10,000 6,000 4,000 Machine hours 15,000 10,000 5,000 Number of production runs 2 6 20 Number of packing orders 7 8 25 Direct Material per unit 8 9 16 Direct labour cost per unit 2.33 4 8 Selling price per unit 18 25 50 Overhead costs DL support 100,000 Machine Operation 144,000 Set-ups 56,000 Engg. support 140,000 Packing 200,000 Total 640,000 Calculate unit cost of X, Y and Z by using tradition costing of applying overhead on the basis of Direct labour hours. Prepare a product profitability statement Calculate unit cost of X, Y and Z by using activity based costing. Prepare a product profitability statement

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