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Question 7.1 A company manufactures two products, A and B, using common facilities. The following cost data for a month are presented to you: A

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Question 7.1 A company manufactures two products, A and B, using common facilities. The following cost data for a month are presented to you: A B Units produced 1,000 2,000 Machine Activity Expenses $3,00,000 N 2 3 Direct labour hours per unit Machine hours per unit Set-up Related Expenses $30,000 Expenses relating to Orders $35,000 6 6 1.5 Set-up of machines 15 50 Orders 18 70 Question 7.1 A company manufactures two products, A and B, using common facilities. The following cost data for a month are presented to you: A B Units produced 1,000 2,000 Machine Activity Expenses $3,00,000 N 2 3 Direct labour hours per unit Machine hours per unit Set-up Related Expenses $30,000 Expenses relating to Orders $35,000 6 6 1.5 Set-up of machines 15 50 Orders 18 70

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