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Question - L company produces two products, calculators and games. The company planned to produce 5 000 calculators and 9 000 games. The company uses ABC costing, and one activity cost pools was assembly, which had a cost driver of total parts. The total amount of estimated overhead, for the assembly cost pool was R842 000. The calculator required 80 parts, and the games required 120 parts. What would the overhead cost per unit be as it relates to the assembly cost pool for games?
What you have found and provide a couple of sentences of explanation as to what those ratios tell you about the firms. Finally, provide some analysis
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