ABC example- Magic Clothes (MC) Ltd Company MC Ltd produces the following two items as follows: SELLING PRICE DIRECT MATERIAL DIRECT LABOUR (8 PER HOUR) T-SHIRT 20 4 1hr JEANS 40 10 2hrs 10,000 5,000 EXPECTED PRODUCTION PER YEAR (IN UNITS) T-shirt Jeans 50 250 The annual overhead costs are 100,000. Overhead costs can be broken down as follows: Overhead Cost Total Drivers Quality 30,000 No of 300 Inspections inspections Invoicing 20,000 No of 400 invoices raised General 50,000 Machine 25,000 overheads hours 100,000 50 350 6,000 19,000 Requirement: 1. Calculate total cost per unit of t-shirt and jeans using traditional full costing. Overhead costs are allocated on labour hour basis. 2. Calculate total cost per unit of t-shirt and jeans using ABC costing