What are the Costs per unit of Alfa and Beta under traditional and ABC costing systems? What would be the prices of Alpha and Beta traditional and ABC costing systems? Compare the costs and prices calculated in the two systems. for calculation (shown in the appendix)  and for analysis               

 

The company produces two similar products called Alfa and Beta

 

Total overheads: 155,000

Machine Hours: 58980 hrs

Product	Alfa	Beta
Production Units	2,580	5100
Material Cost per unit	31	51
Labour Cost per unit	21	17
Machine Hours per unit	11	6
Overheads  Allocation
Set up Costs 30%
Inspections 40%
Materials Handling 30%
Costs Pools
	Alfa	Beta	Total
Setups	400	65	465
Inspections	500	275	775
Goods Movements	625	1,700	2,325

Answer rating: 100% (QA)

To compare the costs and prices of products Alfa and Beta under traditional and activitybased costing ABC systems well need to allocate overhead costs ... View the full answer