- Question 3 Study The Information Provided Below And Calculate The Following 3 1 Manufacturing Costs Per Unit For Each P 1 (24.18 KiB) Viewed 12 times
INFORMATION Matrix Ltd manufactures two products, viz. Product A and Product B. The company operated an absorption costing system gathering all the overheads in a single cost centre and allocated it to products using direct labour as the allocation basis. The enterprise intends implementing the Activity-Based Costing (ABC) system. The budgeted information for 2022 is as follows: Direct materials cost Direct labour cost Overheads: Materials handling Quality control Materials procurement Other overheads Units manufactured Number of inspections Materials movements Number of orders Product A R 400 000 500 000 Product A 10 000 150 120 40 Other overheads are allocated to individual products based on direct labour costs. Product B R 800 000 1 500 000 Product B 50 000 100 180 160 Total R 1 200 000 2 000 000 3 500 000 300 000 200 000 500 000 2 500 000 Total 60 000 250 300 200