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Activity-Based Costing (ABC) · CAPE Accounting Unit 2

36 past-paper questions on Activity-Based Costing (ABC), part of Module 2: Costing Systems, from every CAPE Accounting Unit 2 paper on Quelpr.

Practise Activity-Based Costing (ABC)
  1. 2(c)(i)13 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Calculate the amount of machining department overhead allocated to Job ABQ31 using Activity-Based Costing.
  2. 2(c)(ii)4 marks· CAPE Accounting Unit 2 · 2002 · Paper 2Calculate the cost per unit for the 400 units manufactured assuming that the finishing department still uses the traditional job costing method.
  3. 2(i)4 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Determine an activity rate for each of the four activities.
  4. 2(ii)8 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Calculate the total overhead cost assigned to each product in the cutting department using the rates computed in part (i).
  5. 2(iii)2 marks· CAPE Accounting Unit 2 · 2006 · Paper 2Determine the unit activity (overhead) cost for each product in the cutting department.
  6. 2(c)2 marks· CAPE Accounting Unit 2 · 2008 · Paper 2Outline ONE way in which activity-based costing differs from traditional costing methods.
  7. 2(b)(i)2 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Describe the MAIN difference between traditional costing systems and activity-based costing systems.
  8. 2(b)(ii)a)4 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Compute the activity application rate for EACH activity centre for 2009.
  9. 2(b)(ii)b)4 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Compute the total overhead cost assigned to EACH product in 2009 using activity-based costing.
  10. 2(b)(ii)c)2 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Compute the total cost to manufacture ONE unit of EACH product in 2009 using activity-based costing.
  11. 2(b)(ii)d)4 marks· CAPE Accounting Unit 2 · 2010 · Paper 2Based on your previous calculations, explain why the company's profitability has been declining since the introduction of the premium product.
  12. 2(c)(i)6 marks· CAPE Accounting Unit 2 · 2011 · Paper 2State THREE fundamental differences between activity-based costing and traditional costing systems such as process costing.
  13. 2(c)(ii)4 marks· CAPE Accounting Unit 2 · 2011 · Paper 2Explain how cost drivers are selected in activity-based costing systems.
  14. 2(c)4 marks· CAPE Accounting Unit 2 · 2012 · Paper 2List FOUR benefits that Akupa Engineering Ltd. could gain from using the Activity-Based Costing approach instead of the Traditional Approach to costing.
  15. 2(a)(i)9 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Determine the overhead rate for each of the three activities shown in Table 2.
  16. 2(a)(ii)6 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Assign the manufacturing overhead costs for April to the two products.
  17. 2(a)(iii)2 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Calculate the total assigned overhead costs.
  18. 2(a)(iv)2 marks· CAPE Accounting Unit 2 · 2013 · Paper 2Calculate the overhead cost per unit for each product.
  19. 2(a)(i)3 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Compute the activity application rate for EACH activity centre for Gayle Ltd.
  20. 2(a)(ii)4 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Compute the total overhead cost assigned to EACH product using activity-based costing.
  21. 2(a)(iii)4 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Compute the total cost per unit to manufacture EACH product using activity-based costing.
  22. 2(a)(iv)2 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Compute the total overhead cost assigned to EACH product if direct labour cost had been used to allocate overhead (traditional costing approach).
  23. 2(a)(v)4 marks· CAPE Accounting Unit 2 · 2014 · Paper 2Compute the total cost per unit to manufacture EACH product using direct labour cost (traditional costing approach).
  24. 2(b)(i)7 marks· CAPE Accounting Unit 2 · 2015 · Paper 2Calculate the activity rate for EACH activity.
  25. 2(b)(ii)2 marks· CAPE Accounting Unit 2 · 2015 · Paper 2State TWO benefits of activity-based costing.
  26. 2(a)(i)8 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Compute the activity rate for EACH activity in the law firm.
  27. 2(a)(ii)14 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Compute the legal bill for Hope McKay using the activity-based costing (ABC) method, given the direct costs, indirect cost usage, and a profit margin of 33 1/3% on the legal bill.
  28. 2(c)(i)4 marks· CAPE Accounting Unit 2 · 2016 · Paper 2Suggest an appropriate cost driver for EACH activity.
  29. 2(c)(ii)4 marks· CAPE Accounting Unit 2 · 2016 · Paper 2State TWO merits and TWO demerits of the ABC system employed by Janet.
  30. 2(a)(ii)9 marks· CAPE Accounting Unit 2 · 2017 · Paper 2Calculate the unit cost for job XYZ using activity-based costing.
  31. 2(a)4 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Outline TWO differences between 'traditional costing approaches' and 'activity-based costing techniques'.
  32. 2(c)12 marks· CAPE Accounting Unit 2 · 2019 · Paper 2Determine the bid price of Product 427, using activity-based costing to apply overheads.
  33. 2(c)(ii)4 marks· CAPE Accounting Unit 2 · 2021 · Paper 2Determine the activity cost driver rate for set-up costs and inspection costs.
  34. 2(c)(iii)8 marks· CAPE Accounting Unit 2 · 2021 · Paper 2For the smooth chocolate variety, compute the estimated overhead cost per unit using the activity-based costing system.
  35. 2(c)(i)6 marks· CAPE Accounting Unit 2 · 2022 · Paper 2Calculate the activity cost driver rates for Setup, Maintenance, and Inspection.
  36. 2(c)(ii)9 marks· CAPE Accounting Unit 2 · 2022 · Paper 2Calculate the total cost for Job QP3514 using activity-based costing.

Related topics in Module 2: Costing Systems