(a)[10]
Calculate the full cost per unit for Product X and Product Y by using ABC.
(b)[3]
Calculate the overhead absorbed by each product using the direct labour hour rate.
(c)[4]
Explain how changing the method has affected the overhead cost of each product.
(d)[6]
Recommend whether Ahmed should accept the offer or not. Support your decision with suitable calculations and with both financial and non-financial factors in mind.
(e)[2]
State two reasons why a business might use ABC when allocating overhead costs.