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Product A Product B Product C Total (P) Production and sales units 40.000 25,000 10.000 75,000 20 18 1.680,000 Direct material cost per 25 unit
Product A Product B Product C Total (P) Production and sales units 40.000 25,000 10.000 75,000 20 18 1.680,000 Direct material cost per 25 unit (P) Direct labour hours per 3, 4 2 240,000 unt Machine bours per unit 2 3 210,000 10 25 40 25 120 160) Number of productions rus Number of component 15 Receipts Number of production 15 orders 10 25 50 Direct labour is paid P8 per hour Overhead costs in the period are expected to be as follows: BWP Setup 140,000 Machine 900,000) Goods inwards 280,000 Packing 200,000 Engineering 180,00) 1.700.000 BOU 2020 Page 6 of 8 Degree July-December Structured Timed Online Assessment MA221 Business Management Accounting Assume the following cost drivers: Setup Machine Goods inwards Packing Engineering Cost driver Number of production runs Machine hours Number of receipts Number of production orders Number of production orders Required: Calculate the unit costs for the products based on the Activity Based Method (ABC) (25 marks)
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