Quelpr
4 marksActivity-Based Costing (ABC)

CAPE Accounting Unit 2 · 2002 · Paper 2 · Question 2(c)(ii)

The company considers Activity Based Costing for the machining department with four activity cost pools: Machine setups, Processing, Scrap/rework, and Maintenance, along with overall activity measures and measures for Job ABQ31.

Calculate the cost per unit for the 400 units manufactured assuming that the finishing department still uses the traditional job costing method.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 2(a)Calculate the predetermined overhead rates for the machining department and finishing department.[4 marks]
  2. 2(b)(i)Calculate the total overhead cost allocated to Job ABQ31.[3 marks]
  3. 2(b)(ii)Prepare the job cost sheet for Job ABQ31.[6 marks]
  4. 2(b)(iii)Job ABQ31 consisted of 400 units. What is the cost per unit?[1 mark]
  5. 2(c)(i)Calculate the amount of machining department overhead allocated to Job ABQ31 using Activity-Based Costing.[13 marks]
  6. 2(d)Calculate the under or over allocated manufacturing overhead for the finishing department using the predetermined rate calculated in (a) and the information…[4 marks]

More practice: the rest of this paper · more Activity-Based Costing (ABC) questions · all CAPE Accounting Unit 2 past papers