Page 376 - PM Integrated Workbook 2018-19
P. 376
Chapter 15
Using ABC, overheads should be absorbed into products as follows:
Product ‘Tablet’ overhead cost = (Labour OAR $0.04 × 1 hour) + (Machine
maintenance OAR $0.36 × 4 hours)
Product ‘Tablet’ overhead cost = $0.04 + $1.44 = $1.48
Product ‘Phone’ overhead cost = (Labour OAR $0.04 × 4 hours) + (Machine
maintenance OAR $0.36 × 1 hour)
Product ‘Phone’ overhead cost = $0.16 + $0.36 = $0.52
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