Use the information provided below to calculate the overhead costs per unit for each product using activity based costing.

INFORMATION Remax Inc produces two products viz. A and B. The same equipment is used to produce both products. Details of the cost of activities, inputs and outputs are as follows: Overheads cost analysis: Materials handling Materials procurement Set-up Quality control Production R 540 000 180 000 540 000 900 000 2 160 000 4 320 000 Cost driver analysis Overheads Materials handling Materials procurement Set-up Quality control Production Annual output Product A Product B Cost drivers Materials movements Number of orders Number of set-ups Number of inspections Direct labour hours 360 Product A 360 Product B 180 Total 540 640 1000 216 540 ITI 144 000 144 360 36 000 360 900 180 000 144 000 units 36 000 units