1. Mazoon Traders LLC manufactures two different types of gadgets, Media pad and Yoga pad. The...

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1. Mazoon Traders LLC manufactures two different types of gadgets, Media pad and Yoga pad. The company relies on activity bascd costing system. Products Media pad Yoga pad Units of Production 12,500 7,100 Direct labor hours 920 540 Number of orders placed 35 32 Machine set up hours 35 32 No. of Deliveries 45 35 No.of production runs 15 12 Machine set up costs 38,500 Machine running costs 48,500 Procurement costs 48,000 Delivery costs 37,800 You are required to calculate the cost per unit of Media pad and Yoga pad under ABC (2 marks) and Traditional costing method (2 marks) methods. Compare the cost per unit of production and suggest which costing method is good (I marks). (5 Marks) 1. Mazoon Traders LLC manufactures two different types of gadgets, Media pad and Yoga pad. The company relies on activity bascd costing system. Products Media pad Yoga pad Units of Production 12,500 7,100 Direct labor hours 920 540 Number of orders placed 35 32 Machine set up hours 35 32 No. of Deliveries 45 35 No.of production runs 15 12 Machine set up costs 38,500 Machine running costs 48,500 Procurement costs 48,000 Delivery costs 37,800 You are required to calculate the cost per unit of Media pad and Yoga pad under ABC (2 marks) and Traditional costing method (2 marks) methods. Compare the cost per unit of production and suggest which costing method is good (I marks). (5 Marks)

Answer rating: 100% (QA)

Cost per units of product under ABC costing system 425 Media Pad Yoga Pad Total Overhead cost Driver ... View the full answer