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B. MamaGold Sdn Bhd is a company which produces M61 and M62. The company normally manufactures 4,000 units of M61 and 10,000 units of MGZ.
B. MamaGold Sdn Bhd is a company which produces M61 and M62. The company normally manufactures 4,000 units of M61 and 10,000 units of MGZ. The direct material and direct labour costs per unit are as follows: m--mm_ Direct Material \"351- Direct Labour hours @ RM30 er hour -_ One of the management team has suggested to the company to calculate the product manufacturing cost using an Activity Based Costing (ABC) approach. The amount of manufacturing overhead is traceable to the two products as follows: (RM) 1 mo 2 2.900 . 400 600 Purchase order No of order Machine set No of set ups ups Machine hours Machining No of Quality control inspectors Maintenance Machine hours Required: at. Calculate the total cost per unit for product M61 and M622 using Activity Based Costing (ABC) method. (8 marks) b. Discuss two (2) limitation of Activity Based Costing. (2 marks)
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