Page 23 - Manac Costing Test 1 class slides - 3. Activity-based Costing (ABC)
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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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