Page 73 - UNISA Manac Cost Course Slides Part 1
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TEST 3 - COSTING
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
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