(a)[5]
Calculate, to two decimal places, the profit or loss per unit for each product.
(b)[8]
Calculate the overhead allocated or apportioned to each product by using the extra monthly data.
(c)[3]
Name and explain why one of Bob’s overhead costs cannot be allocated by activity based costing.
(d)[4]
Calculate, to two decimal places, the profit or loss per unit for each product that would be earned if overheads were based on the additional monthly data.
(e)[5]
Advise Bob whether he should alter the selling prices, and justify your view.