Using the information calculate the following, 1. The manufacturing costs per unit and the total manufacturing costs, if all the overhead costs are absorbed on a machine hour basis. 2. The overheads costs per unit using the ABC system

INFORMATION Visa Limited manulactures Wo products and the company is keen on applying the princples of activity-based costing (ABC). Relevnat intormation pertaining to the two products lor a given period appear below. The two products are simllar and are usually produced in production runs of 20 units and sold in batches of 10. Currenty the production overheads are absorbed by using a machine hour rate, and the total of the production The number of requisitions raised on the stores was 120 for each product and the number of orders executed was 126, each order being for a batch of 10 of a product