Question 5.2

5.2 Use the information provided below to calculate the activity rates using the ABC system. (8 marks) INFORMATION A project of Gen Limited is involved in the manufacture of two products and the project manager is keen on applying the principles of the ABC system. Relevant information pertaining to the two products for a given period appear below: Product A Product B Output in units 240 180 The manufacturing overheads for the period are as follows: R Set-up costs 10 080 Stores receiving 7 440 Inspection/Quality control 4 200 Materials handling and dispatch 9 240 The two products are similar and are usually produced in production runs of 20 units. The number of requisitions raised on the stores was 40 for each product and the number of orders executed was 42