Question Two C Ltd makes 2 products X and Y. $12 for X and $24 for Y. Information relating to annual production and sales are as follows Y Sales & Production(units) 24,000 24,000 Selling Price ($ per unit) 30 45 Direct cost ($ per unit) 12 24 Direct Labour hours/unit 2 3 Special Parts per unit 1 4 Overheads are allocated and absorbed on Labour hours. Total overheads is $432,000. The above overheads could be pre-analysed into cost Cost pool Cost $ Cost Driver Quantity Set up Cost 73,200 Set ups 732 Special Parts 60,000 Special Parts 120,000 Order handling 19,800 Customer orders 150 Material handling 63,000 Batches of Materials 252 Direct labour services 216,000 Direct Labour hrs 120,000 The following estimates had been given for the budgeted period. Y Number of set-ups 12 720 Customer Orders 10 140 Material handling Orders 12 240 Required: Calculate the profit for each product using; 1) Absorption Costing 2) Activity Based Costing