(a)[6]
Set out a statement that presents the production cost and the selling price for one unit of each product size.
(b)[8]
Prepare a revised statement that uses the activity information to show the production cost and the selling price of one unit for each product size. (The basis used to apportion the selling and administrative costs should stay unchanged.)
(c)[6]
Calculate the profit that would have been earned if the selling prices had been adjusted to reflect the activity levels that occurred.
(d)[5]
Advise the directors whether they should alter the basis used to allocate overheads and the selling prices, or keep them the same. Support your view.