Use the information provided below to calculate the following: 3.1 Manufacturing costs per unit and total manufacturing costs, if all the overheads costs are absorbed on a machine hour basis. 3.2 Unit overheads costs per product using the ABC system. INFORMATION Output Machine hours per unit Direct materials cost per unit Direct labour cost per unit Product A 480 units 14 hours R400 R196 Product B 360 units 10 hours R320 R140 Arctic Limited manufactures two products and the company is keen on applying the principles of the ABC system. 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 40 units and sold in batches of 20. Currently the production overheads are absorbed by using a machine hour rate, and the production overheads for the period are as follows: Machine department costs (rent, rates, depreciation and supervision) Set-up costs Stores receiving Quality control Materials handling and dispatch The cost drivers to be used for the overhead costs are as follows: R 103 200 50 400 37 200 21 000 46 200 Cost Machine department costs Set up costs Stores receiving Quality control Materials handling and dispatch Melo Question 4 Andile Aretha Cost driver Machine hours Number of production runs Requisitions raised Number of production runs Orders executed The number of requisitions raised was 80 for each product and the number of orders executed was 42, each order being for a batch of 20 of a product