Stonebanks Plc produces and sells two products: Church and Trench, and has recently replaced its traditional costing system by an ABC system. It is believed that overhead costs are more accurately allocated to products using cost drivers. Data from Stonebanks Plc is given below. This includes data from both the old traditional system and the new ABC system.

Data from old traditional system Total manufacturing overhead E30,000 Total production 1,500 units Product Church Product Trench Total units 800 700 Material cost per unit 135 Labour cost per unit $15 $20 Data from new ABC system Cost drivers Cost Cost drivers Cost drivers drivers Volume for Volume for Cost Church Trench Machine set-ups $10,000 2,300 set-ups 2,700 set-ups Quality control inspections $5,000 1 15 inspections 135 inspections Machine maintenance hours $8,000 370 hours 430 hours Purchasing orders $3,000 1,000 orders 1,500 orders Material movements $4,000 1,700 movements 1,500 movements $30,000