bloii Q2. Read the following case relating to a toy manufacturing company produces two products: Product A and B and solve the questions given at the end of the case using the data. The budgeted cost...

Extracted text: bloii Q2. Read the following case relating to a toy manufacturing company produces two products: Product A and B and solve the questions given at the end of the case using the data. The budgeted cost information for each product is as follows. Particulars Product-A Product- B Material 30 40 Labor 20 15 Production overhead cost incurred Machine cost 300000 700000 Set up cost Quality inspection cost Total 250000 1250000 For each of product "A" and "B" we are also given the following information: Product "A" Product "B" No of units produced No production runs No of inspection 20000 40000 180 100 300 400 No of machine hours 50000 50000 Requirements: 1. Calculate the cost of each unit of product "A" and "B" under absorption (Traditional method) costing using the number of units as basis of absorption. 2. Calculate the cost of each unit of product "A" and "B" using ABC system. In this case we are required to suggest the toy company whether to adopt ABC or not.