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4 marksActivity-Based Costing (ABC)

CAPE Accounting Unit 2 · 2019 · Paper 2 · Question 2(a)

Module 2 Costing Systems. Lucas Ltd is responding to a request for proposal (RFP) for the supply of Product 427.

Outline TWO differences between 'traditional costing approaches' and 'activity-based costing techniques'.

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Other parts of this question

  1. 2(b)Determine the bid price for Product 427, using machine hours to apply overheads.[6 marks]
  2. 2(c)Determine the bid price of Product 427, using activity-based costing to apply overheads.[12 marks]
  3. 2(d)(i)Using the weighted average method, calculate the unit cost for the quarter.[7 marks]
  4. 2(d)(i)(b)Using the weighted average method, calculate the cost of goods transferred.[3 marks]
  5. 2(d)(ii)Calculate the cost of ending work-in-progress.[3 marks]

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