Question: What are the Costs per unit of Alfa andBeta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional

What are the Costs per unit of Alfa andBeta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional and ABC costing systems? Compare the costs and prices calculated in the two systems. for calculation (shown in the appendix) and for analysis

Product Alfa Beta
Production Units 2,580 5100
Material Cost per unit 31 51
Labour Cost per unit 21 17
Machine Hours per unit 11 6
Total overheads: 155,000
Machine Hours: 58980 hrs
Overheads Allocation
Set up Costs 30%
Inspections 40%
Materials Handling 30%
Costs Pools
Alfa Beta Total
Setups 400 65 465
Inspections 500 275 775
Goods Movements 625 1,700 2,325

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