EXERCISE 1 Notation 11/20 The Company ITEKA Inc. manufactures and sells 5 models of furniture. Last year, the company has manufactured and sold 10 000 of units with a total amount of sales estimated C1 540 000 Each unit of product requiring one manufacturing direct labour hour, the company has spent 10 000 labour hours. The product P: One model is considered as the most important product P. Last year, the company sold 2 500 units of The direct manufacturing costs and selling price of Pare: Product P Direct costs: Raw Materials (40 components) in Direct labour (1 hour 16/ hour) Selling price of unit of Pin ) Total perunit 120 16 200 ITEKA Inc. faces many indirect costs estimated 590 000. These indirect costs are obviously related to the whole production (10 000 units) Indirect costs Purchasing Department Manufacturing Department Sales &after sales Administration Department Research & Development Department Total Indirect costs in e 122 500,00 312 900,00 89 600,00 40 000.00 25 000,00 590 000,00 Part 1 -Traditional Indirect costs allocation 3 points Indirect cost are allocated to each product according to the number of direct labour hours required. QUESTIONS 1-1. How much is indirect (overhead) cost per product? Answer: 1-2. How much is the product P manufacturing cost (forl unit of Pj? Answer: 1.3. How much is the product Ptuli costing ? How much is the margin of Pin value and in $? Please comment your result