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INDIVIDUAL ASSIGNMENT - TO BE SUBMITTED NEXT WEEK 20TH MARCH 2017 ASEM ABA Company manufactures two products, X and Y. The product X is a low volume and and its sales are only 5,000 p.a. Product Y is high volume and Labour intensive, its sales per annun is 25,000. Product X Takes 6 labour hours to make one unit but y requires 8 hours per unit. Details of costs for materials and labour for each product are as follows: PRODUCT - PARTICULARS PRODUCT -Y 200 100 Direct Materials - rates Direct Labour @10 - rates per hour 60 80 TOTAL 260 180 The company works 100,000 direct labour per annun. Total manufacturing overhead costs are GHC1,750,000 per annun. The usage of activities is as follows: Total Overheads Details of Activity PRODUCT PRODUCT Y PARTICULARS Machine Set up 450,000 10,000 6,000 4,000 Quality inspection 300,000 15,000 10,000 5,000 Production order 180,000 600 200 400 Machine hours 625,000 50,000 12,000 38,000 Material receipts 195,000 1,500 300 1,200 TOTAL OVERHEADS 1,750,000 You are required to compute per unit cost of each product using; a) Direct labour hour rate method for absorption of overhead costs and b) Activity Based Costing technique for absorption of overhead costs. NB: In both methods show Summary of the Total Cost under traditional cost accounting and Activity Based Costing