Question $2$

The budgeted manufacturing overhead costs for Din Factory for the year $2022$ are

as follows:

Since $2010,$ the business has been using the basis of direct labour hours to charge

overheads. For the year $2020,$ the budgeted direct labour hours are $200,000$ and

the budgeted production of Product $S$ is $1,500$ units.

Required:

a$)$ Calculate the appropriate overheads absorption rates for traditional and ABC

methods.

b$)$ What is the product cost per unit if direct materials cost is RM$20$ per unit and

direct labour is $2\mathrm{.}5$ hours per unit at RM$10$ per hour, under traditional and ABC

methods?help