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_ Quality control 3 45b {it}! 2222 22- Maintenance of production machines 1 BUD {it}! Gamma has always allocated xed manufacturing overhead costs to its

_ Quality control 3 45b {it}! 2222 22- Maintenance of production machines 1 BUD {it}! Gamma has always allocated xed manufacturing overhead costs to its products based on the total labour hours that are required in the production process. The cost accountant has. hot-tetrerr heard about activity-based costing {ABC} at a recent seminar that he attended and wants to change the accounting system to an ABC system. He is. however. still unsure about this decision and has asked for your help in respect of certain calculations. The following information has been provided; Product Total number of Total labour units produced hours Alpha 30 000 2 400 Beta 90 000 9 600 . Every 25th Alpha unit and every 50th Beta unit is quality inspected. . Products are manufactured in production runs and the manufacturing machines must be set up for each production run. Each Alpha production run consists of 100 units and each Beta production run of 200 units. . It takes 60 machine minutes to produce one unit of Alpha and 80 machine minutes to produce one unit of Beta. The maintenance of the production machines is driven by the time the machines are used

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