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REQUIRED Use the information provided below to calculate the following: 3.1 The manufacturing costs per unit and the total manufacturing costs, if all the overheads
REQUIRED Use the information provided below to calculate the following: 3.1 The manufacturing costs per unit and the total manufacturing costs, if all the overheads costs are absorbed on a machine hour basis. 3.2 The overheads cost per unit using the ABC system. ( 4 marks) ( 16 marks) INFORMATION Visa Limited manufactures two products and the company is keen on applying the principles of activity-based costing (ABC). Relevant information pertaining to the two products for a given period appear below: The two products are similar and are usually produced in production runs of 20 units and sold in batches of 10 . Currently the production overheads are absorbed by using a machine hour rate, and the total of the production overheads for the period are as follows: The number of requisitions raised on the stores was 120 for each product and the number of orders execureu was 126 , each order being for a batch of 10 of a product
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