(a)[10]
Calculate the full cost per unit of Product X and Product Y by applying ABC.
(b)[3]
Calculate the overhead allocated to each product using the direct labour hour rate.
(c)[4]
Explain what effect the change in method has had on the overhead cost of each product.
(d)[6]
Recommend whether or not Ahmed ought to accept the offer. Justify your decision using appropriate calculations and by considering both financial and non-financial factors.
(e)[2]
State two reasons why a business may use ABC to allocate overhead costs.