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4 marksActivity-Based Costing (ABC)

CAPE Accounting Unit 2 · 2006 · Paper 2 · Question 2(i)

Kingstown Industries manufactures custom and standard computerized scoreboards across three processes, allocating cutting department overhead using activity-based costing based on four activities: production setup, procurement, quality control, and materials management.

Determine an activity rate for each of the four activities.

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Other parts of this question

  1. 2(ii)Calculate the total overhead cost assigned to each product in the cutting department using the rates computed in part (i).[8 marks]
  2. 2(iii)Determine the unit activity (overhead) cost for each product in the cutting department.[2 marks]
  3. 2(iv)Prepare a process-costing worksheet for the cutting department for the current period using the weighted-average process costing method.[21 marks]

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