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
|
hours per unit
|
|
|
|
$
|
|
|
|
W
|
10
|
2
|
20
|
1
|
1
|
|
X
|
10
|
2
|
80
|
3
|
3
|
|
Y
|
100
|
5
|
20
|
1
|
1
|
|
Z
|
100
|
5
|
80
|
3
|
3
|
|
|
|
14
|
|
|
|
| Direct labour cost per hour |
$5 |
|
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.