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In this question I am not understanding part 5
Production cost of X 71.40 in Absorption costing and 79.64 in abc
Production cost of Y 71.40 in absorption costing and 83.25 in abc
But I did not understood the points in last part 5I am looking at the original exam question and answer, and there is no point 5.
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Sir in this question there are 5 parts .
DUFF CO (JUNE 2014, adapted. This question is in Kaplan Revision Kit but in brackets it’s written duff co.june 2014
This is the question of acitivity based costing.
This question starts so Duff co. Manufacturers three products X,Y,Z AND USES cost plus pricing.each product uses same materials and the same type of direct labour, but in different quantities. For many years , the company has been using full absorption costing and absorbing overheads on the basis of direct labour hours. Budgeted production and sales volumes for x, y , z for the next years are 20000 units, 16000, and 22000 units.
I have written half question
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