The following activity volumes are associated with the product line for the period as a whole. Total activities for the period:
|
Number of |
|||
|
Number of |
movements |
Number of |
|
|
set-ups |
of materials |
inspections |
|
|
Product X |
75 |
12 |
150 |
|
Product Y |
115 |
21 |
180 |
|
Product Z |
480 |
87 |
670 |
|
670 |
120 |
1000 |
You are required
(b) to calculate the cost per unit for each product using ABC principles;
(c) to comment on the reasons for any differences in the costs in your answers to (a) and (b).