Solution-Calculate the full production costs for abc and pqr

Calculate the full production costs for abc and pqr

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Reference no: EM132596280

ANZ Corporation manufactures a product available in two models: ABC, and PQR. Despite the growing popularity of the PQR model, company profits have been declining steadily, and management is beginning to think there might be a problem with their costing system. Material and Labour costs are given below:

ABC PQR

Sales demand 30000 15000

Direct material cost/unit $45 $60

Direct labour cost/unit $30 $40

Production overheads are $600,000 each month.

These are absorbed on a sales demand basis.

Question 1: Calculate the full production costs for ABC and PQR, using traditional costing method

Reference no: EM132596280

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Calculate the full production costs for abc and pqr

Reference no: EM132596280

Reference no: EM132596280

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