DOC Ltd Manulacturiages and sells two products Models $\backslash ($ A $\backslash )$ and B$.$ Maragement must estimate the profitability of each prodht Price them. they hire you to produce and sell and how to cou your request some aspect a consultant to guide them. by the accountant.

He further informs you that indirect cost incurred during the year are as follows:

Traditionally, the firms allocates this cost total to each product, A or B $,$ based on proportional usage of direct labour costs. You decide to identify the various activities required for $\backslash ($ A $\backslash )$ and $\backslash ($ B $\backslash )$ : After interviewing managers of all departments you are able to collect the following information:

Prepare a report for the management with your recommendations. Include the following

i$)$ Compare Indirect cost per unit allocated to Model A $\backslash$& B under traditional and $\backslash ($ A B C $\backslash )$ method

ii$)$ Compare Profitability of Product $\backslash ($ A $\backslash$& B $\backslash )$ under traditional and $\backslash ($ A B C $\backslash )$ method iii$)$ Suggest a pricing strategy to improve profitability