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Solve all question A and B (put the solution in tables) ...

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Accounting

Solve all question A and B
(put the solution in tables) image
Almarai Company Lid manufactures two types of Sprizzer - Classic and Luxury. Each product requires the incorporation of a difficult-to-handle speoial part (one of them for a Classic and four for a Luxury). Both of these products ace made in batches (large batches for Classic and smal ones for Luxury). Each now batch requires that the production facilities are 'set up'. Details of the two products are: In recent months, Aimarai Company Lid has been trying to persuade customers who buy the Classic to purchase the Lumury instead. An analysis of overhead costs for Almara Company Lid has provided the following information: Paptions Required: (a) Calculate the proft per unit and the return on sales for Standard and Luxury Sprizzers using ii) the traditional direct labour-hour based absorption of overheads: (ii) activity-based costing methods. (b) Comment on the managerial implications for Almarai Company Lid of the results in (a) above

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