- what is total direct costs of each unit if Basics and Standards usuing traditional method?

- What is the indirect costs of each unit if Basics and Standards usuing traditional method?

- What is the full cost of each unit of Basics and Standards using traditional method?

- What would be the price of each unit of Basics and Standards using traditional method?

- What is total direct costs of each unit if Basics and Standards usuing ABC method?

- What is the indirect costs of each unit if Basics and Standards usuing ABC method?

- What is the full cost of each unit of Basics and Standards using ABC method?

- What would be the price of each unit of Basics and Standards using ABC method?

A company in the UK has two products, Basic and Standard. The business adds a profit mark-up of 25 per cent to each of these products' full cost in order to arrive at their sales prices. Traditionally, the full cost of each unit of Basic or Standard is calculated by charging overheads to each type of product on the basis of direct labour hours. The costs are as follows: Basic Standard Direct Labour (all 8/hour) 40 32 Direct Material 10 15 The total overheads are 984,000. The business expects to make and sell 20,000 units of Basics and 16,000 units of Standard. The business's accountant has also managed to break down the overheads of 984,000 into the following parts: Activity (and cost driver) Annual number of activities Cost Standard 3. Total Basic Number of machine set-ups 600 240 360 250,000 Number of material issues 150,000 1,200 400 800 Number of invoices issued 300 150,000 750 450 General production (machine hours) 35,000 434,000 50,000 15,000 984,000 Total And with the following explanations: The machinery will require different settings for manufacturing Basics and Standards, and they'll be set up 240 times during the year to manufacture Basics and 360 times during the year to manufacture Standards. Manufacturing these products will require regular material issues from the storage to the production line. There will be 400 material issues for Basics and 800 material issues for Standards. Sales orders are received in batches and invoices are costly to be issued and processed. It's expected that all Basics will be sold in 450 orders and all Standards will be sold in 300 orders. General production overheads is divided between the two products based on the number of machine hours used. You will need to calculate the full cost of each product using the traditional costing and ABC methods in order to be able to answer the following questions