Case Study Name: ABCD Limited ABCD Limited is dealing in four similar products which are produced in production runs of 20 units and sold in batches of 10 units. The details of the four products are as follows: PARTICULARS PRODUCT PRODUCT PRODUCT PRODUCT "A" 'B" C" "D" Output in Units 120 100 80 120 Costs per unit: USD USD USD USD Direct Material Cost 40 50 30 60 Direct Labour Cost 28 21 14 21 Machine Hours per unit 4 3 2 3 The production overheads are currently being absorbed on the basis of machine hours. The analysis of the total product overheads is given below: PARTICULARS AMOUNT IN USD Machine Department Costs (rent, depreciation, supervision) 10,430 Set-up Costs 5,250 Stores Receiving 3,600 Inspection/Quality Checks 2,100 Materials handling and despatch costs 4,620 You have identified the Cost Drivers as follows: COST COST DRIVER Set-up Costs Number of production runs Stores Receiving Number of Requisitions raised Inspection/Quality Checks Number of production runs Materials handling and despatch costs Number of orders executed The number of requisitions raised on the stores was 20 for each product and the number of orders executed was 42, each order being for a batch of 10 of one product. Question 1 (10 Marks) What is the total costs of each product if all overheads are absorbed on a machine hour basis