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QUESTION THURON LTD HURON Ltd makes shoes in two renges such as Besic and Super Information relating to each of these products is set out below: Basic Super Selling price per unit 2180 9250 Material Cost per unit 220 980 Labout time per unit 4 4 Labour rate per hour 215 Number of Units Produced Cech Year 2.000 3,000 Cost Drivers Number of Quality inspections 8 350 Number of Sales invoices issued each year 180 Number of batches per total production 40 Mechine Hours tore! soo 5.400 The Director of Huron Ltches produced the following analysis of total overheads per year and their relevant cost drivers Cost Pool Cost Drivers Quality Inspection 140,000 Number of unity inspections Se es invoicing Number of Sales Invoices issued each 80,000 year Material Mending Other Overheads Number of batches per total production 60,000 120,000 Mechire Mours total 400,000 Required Calculete full cost per unit and profit per unit for each product using - Traditional full cost method of overheed ebsorption besed on direct lebour hours (15 marks) - Activity-based costing ABC) method. (20 marks) (Total: 35 marks) QUESTION THURON LTD HURON Ltd makes shoes in two renges such as Besic and Super Information relating to each of these products is set out below: Basic Super Selling price per unit 2180 9250 Material Cost per unit 220 980 Labout time per unit 4 4 Labour rate per hour 215 Number of Units Produced Cech Year 2.000 3,000 Cost Drivers Number of Quality inspections 8 350 Number of Sales invoices issued each year 180 Number of batches per total production 40 Mechine Hours tore! soo 5.400 The Director of Huron Ltches produced the following analysis of total overheads per year and their relevant cost drivers Cost Pool Cost Drivers Quality Inspection 140,000 Number of unity inspections Se es invoicing Number of Sales Invoices issued each 80,000 year Material Mending Other Overheads Number of batches per total production 60,000 120,000 Mechire Mours total 400,000 Required Calculete full cost per unit and profit per unit for each product using - Traditional full cost method of overheed ebsorption besed on direct lebour hours (15 marks) - Activity-based costing ABC) method. (20 marks) (Total: 35 marks)