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Question1 a) The Noosa Bicycle Co Pty Ltd manufactures two types of bikes-amateur and professional. The company uses activity-based costing to allocate overhead costs to
Question1 a) The Noosa Bicycle Co Pty Ltd manufactures two types of bikes-amateur and professional. The company uses activity-based costing to allocate overhead costs to each following information has been provided: product. The Qty produced Direct DLH Direct labour cost Product Amateur Professional 100 material Used RM90 RM120 200 400 300 RM4.000 RM3,000 of times No. of Parts No. of Design Changes No. of Setups Product Amateur Professional 30 Handled 20 10 15 The total overhead costs were: Handling No. of parts Design changes Setups Total RM5,000 RM6,500 RM1,800 RM1,500 RM14,800 Required: i. Calculate the unit cost for each product using activity-based costing. (10 marks) ii. Calculate the unit cost for each product using direct labour hours as the basis for applying overhead
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