Two products x and y are made using similar equipments and methods. The data for the last period are:X YUnits produced 6000 8000Labor hours per unit 1 2Machine hour per unit 4 2Set-ups in period 15 45Orders handled in the period 12 60Overheads for the period poundRelating to production set-ups 179000Relating to order handling 30000Relating to machine capacity 55000
Calculate the overheads to be absorbed per unit of each product based on an ABC approach using suitable cost drivers
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