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13 marksActivity-Based Costing (ABC)

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

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 amount of machining department overhead allocated to Job ABQ31 using Activity-Based Costing.

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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)(ii)Calculate the cost per unit for the 400 units manufactured assuming that the finishing department still uses the traditional job costing method.[4 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