Saturn, a chocolate manufacturer, produces three products: . The Sky Bar, a bar of solid...

  

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Saturn, a chocolate manufacturer, produces three products: . • The Sky Bar, a bar of solid milk chocolate. The Moon Egg, a fondant filled milk chocolate egg. . • The Sun Bar, a biscuit and nougat based chocolate bar. Information relating to each of the products is as follows: Sky Bar . Direct labour cost per unit ($) Direct material cost per unit ($) Actual production/sales (units) Direct labour hours per unit Direct machine hours per unit Selling price per unit ($) Annual production overhead = $80,000 0.07 0.17 500,000 0.001 0.01 0.50 Moon Egg 0.14 0.19 150,000 0.01 0.04 0.45 Sun Bar 0.12 0.16 250,000 0.005 0.02 0.43 Tasks Using traditional absorption costing, calculate the full production cost per unit and the profit per unit for each product. Explain the implications of the figures calculated. Saturn, a chocolate manufacturer, produces three products: . • The Sky Bar, a bar of solid milk chocolate. The Moon Egg, a fondant filled milk chocolate egg. . • The Sun Bar, a biscuit and nougat based chocolate bar. Information relating to each of the products is as follows: Sky Bar . Direct labour cost per unit ($) Direct material cost per unit ($) Actual production/sales (units) Direct labour hours per unit Direct machine hours per unit Selling price per unit ($) Annual production overhead = $80,000 0.07 0.17 500,000 0.001 0.01 0.50 Moon Egg 0.14 0.19 150,000 0.01 0.04 0.45 Sun Bar 0.12 0.16 250,000 0.005 0.02 0.43 Tasks Using traditional absorption costing, calculate the full production cost per unit and the profit per unit for each product. Explain the implications of the figures calculated.

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