Page 70 - UNISA Manac Cost Course Slides Part 1
P. 70
TEST 3 - COSTING
ABC – example 1
(a) Traditional costing based on direct labour hours
Total direct labour hours:
Product A = 2 hours per unit x 550 units = 1 100 labour hours
Product B = 2 hours per unit x 110 units = 220 labour hours
Total direct labour hours = 1 100 + 220 = 1 320
Machine setup-related cost per labour hour = R42 000 / 1 320 = R31.82
per labour hour
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