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Suppose that Cooplan manufactures four products, W, X, Y and Z. Output and cost data for the period just ended are as follows.
Number of production
runs in the
Material cost
Direct labour
Machine
Output units
period
per unit
hours per unit
$
W
10
2
20
1
X
80
3
Y
100
5
Z
14
Overhead costs
Short run variable costs
3,080
Set-up costs
10,920
Expediting and scheduling costs
9,100
Materials handling costs
7,700
30,800
Required
Prepare unit costs for each product using conventional costing and ABC.
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