A+ Ltd.’s income statement is shown in the diagram. The company uses direct labour as the basis of overhead allocation (a traditional system). The overhead cost is 50% of labour cost. Which product is more profitable to sell under per unit analysis?

Triple Towers Ltd’s overhead consists of two types of expenditure, namely engineering costs ($100,000) and packing and delivery costs ($93,000). 10 and 15 production runs were done for products X and Y respectively. During the year there were 10 deliveries for product X while there were 15 deliveries for product Y. Under the ABC method, at what rate would the packing and delivery costs be allocated?

A+ Ltd’s overhead consists of two types of expenditure, namely rent ($72,000) and delivery ($25,200). 9,200 and 8,800 square foot of space are occupied by product A and B respectively. During the year, there were 28,000 orders for delivery of product A while there were 1,400 orders for product B. Allocate the delivery overhead to each product.

Z+ Ltd’s overhead consists of two types of expenditure, namely machine running costs and rent. Z+ Ltd has adopted ABC method to allocate costs and have calculated that machine running costs are to be allocated at $7.25 per machine hour and rent allocated at $10.65 per square metre of space occupied. Z+ Ltd produces Badges and Cadges. What further information is required to determine the machine running cost that is to be allocated to Badges?