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