Activity Based Costing

Una manufactures three products: A, B, and C. Data for the period just ended is as follows: A B C Production (units) 20,000, 25,000, 2,000 Sales price ( per unit) $20 $20 $20 Material cost (per unit) $5, $10, $10 Labour hours (per unit) 2 hours 1 hour 1 hour (Labour is paid at the rate of $5 per hour) Overheads for the period were as follows: Set-up costs 90,000 Receiving 30,000 Despatch 15,000 Machining 55,000= US$190,000 Cost driver data: A B C Machine hours per unit 2 2 2 Number of set-ups 10 13 2 Number of deliveries received 10 10 2 Number of orders despatched 20 20 20 . My challenge is how to calculate the cost per machine hour. Thanks