CoursHeroTranscribedText: IA] manufacturing company produces about one hundred products. Its largest selling product is product...
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CoursHeroTranscribedText: IA] manufacturing company produces about one hundred products. Its largest selling product is product X and its smallest is product Y. relevant data is given below: Particulars Total product Units produced per annum 50000 Material cost per unit Direct labor per unit Machine time per unit No. of set ups per unit 500 No. of purchase orders for material 2300' No. of times material handled 12000 Direct labor cost per hour R5500 Overhead Costs: Set up 230:000 Purchasing 141000 Material handling 130:000 Machines 650.000 Total Machine hours are 600:000 hours. 1311000 Required: :1) Find out the production unit cost of product X and product Y. b) Using conventional product costing machine hour overhead absorption rate. c) Using ABC {Activity Base Costing ! compare the results of methods and comment
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