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Section B Question 11 A business manufactures generators for domestic use. There are two models: standard and advance. The models require a special component one

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Section B Question 11 A business manufactures generators for domestic use. There are two models: standard and advance. The models require a special component one for a standard and three for an advance generator. The standard generators are made in larger batches whereas the advance generators are made in small batches. The current pricing policy has been to absorb all overheads using the \"direct labour hours" to obtain total cost. Price Is then calcuiated as total cost plus 25% mark up. The following information Is provided: Standar Advan _ 1:! co

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