Compare the relative merits of calculating overhead costs per unit of products using each of the...

1. State the principles to be applied in absorbing costs into products.

2. Compare the relative merits of calculating overhead costs per unit of products using each of the following methods:

(a) Cost per direct labour hour.

(b) Cost per unit of output.

(c) Cost per direct machine hour.

(d) Cost per ÂŁ of direct labour.