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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 absorked on a machine hour basis. (4 marks) 3.2 The overheads cost per unit using the ABC system. (16 marks) INFORMATION Visa Limited manufactures two products and the compary 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 katches of 10 . Curently the production overheads are absorked by using a machine hour rate, and the total of the production overheads for the period are as follows: The cost divivers (in random order) to be used for the overhead costs are as follows: The number of requisitions raised on the stores was 120 for each product and the mumber of orders executed was 126 , each order being for a batch of 10 of a product
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