(a(i))[3]
Calculate the total production cost for each product.
(a(ii))[1]
Calculate the production cost per unit for each product.
(b)[2]
Calculate the selling price per unit for each product.
(c)[2]
State two disadvantages for a business of adopting activity based costing.
(d)[4]
Calculate the total production overhead allocated to each product using activity based costing.
(e)[3]
Recalculate each product’s unit cost and selling price while keeping the $50\%$ mark-up.
(f)[6]
Explain three reasons why B Limited should switch the overhead allocation method to activity based costing.
(g(i))[2]
Calculate the new total profit for each product if this change is adopted.
(g(ii))[2]
Give two reasons why B Limited should adopt this change.