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1.Calculate the total cost per unit of Product B and Product C under the traditional...

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Accounting

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1.Calculate the total cost per unit of Product B and Product C under the traditional costing system. (5 marks)

2. The CFO is keen to find out if an over or under absorption of overhead had taken place for Products B and C. Discuss this and provide evidence. (5 marks)

3. With the information provided for Product D, calculate the profit for the period using the absorption costing and the marginal costing approach and discuss the difference between these two approaches (20 marks).

Thank you for your help!

Section B: The company has the following products: (i) Product B and Product C. Product B 60 35 Product C 80 Direct material cost per unit Direct Labour cost per unit Machine Hours per unit 55 The company expects to produce 1,000 of Product B and 1,500 of product C. The manufacturing overhead costs were budgeted at 155,000 with budgeted machine hours of 10,000. Rivers Limited allocates the manufacturing overhead costs on the basis of machine hours. The actual overhead costs were 185,000. (ii) Product D. /unit Sales (units) 1,000 Selling Price 60 Direct Material Direct Labour Variable overheads Fixed production overheads 6,000 Fixed administrative costs 2,000 Budgeted and actual output and sales were as expected

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