# CFOS/Overheads/Exercise 4.2 Sample Answers

From WikiEducator

Apportioning the costs of inspection using the ABC method requires the following calculations:

Total Cost of Inspection for a batch of Product X =

- Inspection Hours × Cost per Hour

Unit Cost of Inspection for Product X =

- Total Inspection Cost for Product X
- divided by the Number of Units of Product X in batch

Kettles – Total Inspection Cost: | 10 hours × £25 per hour = | £ 250.00 |

Kettle – Inspection Cost per Unit: | £ 250 ÷ 1,000 units = | £ 0.25 |

Toasters – Total Inspection Cost: | 20 hours × £25 per hour = | £ 500.00 |

Toaster – Inspection Cost per Unit: | £ 500 ÷ 1,000 units = | £ 0.50 |

Compare these figures with the **Answers to Exercise 4.1**.