You are working on Management Accountant position in a HASHTAG Manufacturing Company and assign a job to compare traditional costing approach with ABC system to make final decision to adopt the ABC system. The following data available for comparison: -

	X	Y	Z
Production (Units)	15000	25000	20000
Raw Material per unit (RO)	2.50	2.75	3.00
Direct Labour per unit (RO)	3.00	2.50	2.75
Labour hours per unit	0.25	0.20	0.15
Number of Productions runs	140	120	240
Number of Purchase order	24	32	24
Number of Deliveries to retailer	20	15	25

The total overhead costs to all the products together are as below: -

	Amount in RO
Machine Set up costs	48000
Procurement costs	30000
Delivery costs	10000

Answer the following multiple-choice questions based on abovementioned Problem:

The predetermined overhead rate as per the traditional costing approach is: -

A. RO 7.589 B. RO 7.489C. RO 7.894D. RO 7.948

The total labour hours to all products to distribute overheads among three products under traditional costing approach are: -

A. RO 11500 B. RO 11250C. RO 11750D. RO 11000

How much total overhead is assigned to Product Y using traditional costing approach?

A. RO 28084 B. RO 37445C. RO 22467D. RO 26020

What is the total cost per unit for Product X and Z under traditional costing approach?

A. RO 6.748 and RO 6.873 B. RO 7.372 and RO 6.748C. RO 6.140 and RO 5.412D. RO 7.372 and RO 6.873

The activity rate for machine set-up cost under ABC approach would be: -

A. RO 375 B. RO 96 C. RO 166.67 D. RO 98

The activity rate for procurement cost under ABC approach would be: -

A. RO 375B. RO 96 C. RO 166.67 D. RO 380

The activity rate for delivery cost under ABC approach would be: -

A. RO 96 B. RO 375 C. RO 166.67 D. RO 167.00

What is the prime cost per unit for Product X, Y and Z?

A. RO 5.5; RO 5.25 and RO 5.75 B. RO 1.872; RO 1.498 and RO 1.123 C. RO 1.667; RO 1.041 and RO 1.810 D. RO 5.75; RO 5.5 and RO 5.25

The amount of procurement cost allocated to Product X, Y and Z under ABC would be: -

A. RO 12000; RO 9000 and RO 9000 B. RO 9000; RO 9000 and RO 12000 C. RO 9000; RO 12000 and RO 9000 D. RO 13440; RO 11520 and RO 23040

What is total cost per unit for Product Z under ABC?

A. RO 6.291 B. RO 6.873 C. RO 7.167D. RO 7.560