Suppose that Cooplan Ltd manufactures four products, W,X,Y and Z .Output and cos
ID: 2434159 • Letter: S
Question
Suppose that Cooplan Ltd manufactures four products, W,X,Y and Z .Output and cost data for the period just ended are as follows.Products Output(unit) Number of production Materialcost DirectLaour Machine hours
runs in theperiod per unit ($) hoursper unit per unit
W 10 2 20 1 1
X 10 2 80 3 3
Y 100 5 20 1 1
Z 100 5 80 3 3
Direct labour cost per hour is $5
Overhead costs are as follows.
$
Short-run variablecosts 3,080
Set-Upcosts 10,920
Production 9,100
Materials handlingcosts 7,700
Required: Calculate product costs using the followingapproaches.
(a) Absorption Costing
(b) ABC