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Question 1 Saturn, a cholate manufacturer, produces three products: - The Sky Bar, a bar of soli milk chocolate. - The Moon Egg, a fondant
Question 1 Saturn, a cholate manufacturer, produces three products: - The Sky Bar, a bar of soli milk chocolate. - The Moon Egg, a fondant filled milk chocolate egg. - The Sun Bar, a biscuit and nougat-based chocolate bar Information relating to each of the products is as follows: Annual production overhead =$80,000 Required: a) State and evaluate possible basis of overhead absorption. b) Using the traditional costing, calculate the full production cost per unit and the profit per unit for each product (assume for this purpose that overheads are absorbed on machine basis). Explain the implication of the figures calculated
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