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Q4. ABC Co. Produces three products A,B.C their per unit cost data are given below: Particulars A B C Total Unit produced 10.000 20,000 30.000

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Q4. ABC Co. Produces three products A,B.C their per unit cost data are given below: Particulars A B C Total Unit produced 10.000 20,000 30.000 Direct material cost per unit 50 40 30 Direct labour cost per unit 30 40 50 Labour hours per unit 3 4 5 Machine hours per unit 4 7 No of purchase requisition 1200 1800 2000 5000 No of machine set ups 240 260 300 800 Production overhead Rs26,00,000 split into two departments: Department 1: 11,00,000, Department 2: 15,00,000 Department 1 is labour intensive and Department 2 is machine intensive Total labour hours in Department 1 = 1,83,333 Total machine hours in department 2 = 5,00,000 Production overheads split into two Rs26,00,000 Receiving and inspection: 14,00,000 Production scheduling and machine set up: 12,00,000 You are required to prepare product cost statement under: a. Traditional method and Activity method b. Compare the two results

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