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Question 1 (30 Marks) Harambee Lad makes three main products, using broadly the same production methods and equipment for all the three products. A corwentional product costing system is used at present although activity-based costing (ABC) system is being considered Details of the three products for a typical period are: Volume (Units) Product X Product Y Pro2 Direct labour costs are N$ per hour. Production Overhead are absorbed on a machine hour basis Further analysis shows that the total of production overhead may be divided as follows: Page 22 of 27 Set-up costs Costs reling to machinery Material handling cost 22 / 27 Tota The following activity levels are associated with the product lines for the whole financial period. mber of set-ups Number of times Number of materials are moved inspections Product X Product Y Product Z 115 670 Required 1.1 Calculate the cost per un for each product using conventional costing 12 Calculate the cost per unit for each product using ABC principles Comment on the reasons for any differences in the two costs calculated for Question 1 (30 Marks) Harambee Lad makes three main products, using broadly the same production methods and equipment for all the three products. A corwentional product costing system is used at present although activity-based costing (ABC) system is being considered Details of the three products for a typical period are: Volume (Units) Product X Product Y Pro2 Direct labour costs are N$ per hour. Production Overhead are absorbed on a machine hour basis Further analysis shows that the total of production overhead may be divided as follows: Page 22 of 27 Set-up costs Costs reling to machinery Material handling cost 22 / 27 Tota The following activity levels are associated with the product lines for the whole financial period. mber of set-ups Number of times Number of materials are moved inspections Product X Product Y Product Z 115 670 Required 1.1 Calculate the cost per un for each product using conventional costing 12 Calculate the cost per unit for each product using ABC principles Comment on the reasons for any differences in the two costs calculated for