(a)[7]
Calculate the unit production cost and unit selling price for each product.
(b)[1]
State what the term ‘Activity Based Costing (ABC)’ means.
(c)[7]
Recalculate the unit production cost and the unit selling price for each product using ABC.
(d(i))[3]
Calculate the difference in unit production overhead charged to Product X and Product Y under each method.
(d(ii))[2]
Calculate the difference in unit selling price between the two costing methods for Product X and Product Y.
(e)[5]
Advise Young whether he should or should not switch the method used to allocate production overhead costs to ABC. Justify your answer.