Page 61 - 5.2 i. Manac Costing ITC Summarised Notes
P. 61
ITC EXAM PREP
ABC – example 1
Machine setup-related cost per setup hour = R42 000 / 70 =
R600 per setup hour
Cost allocation:
Product A = R600 per hour x 35 hours = R21 000
Product B = R600 per hour x 35 hours = R21 000
Cost per unit:
Product A = R21 000 / 550 = R38.18 per unit
Product B = R21 000 / 110 = R190.91 per unit
61
