1. Choose a manufacturing company and assume that your company is currently producing only 3 types of products. Define the Production activity and Production Support activities (minimum 5), which take place in your company. 2. Define the costs incurred in your company (10 items) and classify them into the categories as follows: 2.1. period costs and product costs; 2.2. variable costs, fixed costs, and mixed costs; 2.3. direct costs and indirect costs; 2.4. committed fixed costs and discretionary fixed costs; 2.5. relevant and irrelevant costs. 3. Define and compute total manufacturing overhead costs (related to Production Support Activities). 4. Compute total direct costs (Direct Labour and Direct Materials) and total indirect costs (related to the Production Support Activities). 5. Allocate indirect Production costs using traditional cost system. For this purpose, you need to define the allocation rate to be applied. 6. Allocate indirect production costs under Activity-based costing (ABC) system. For this purpose, you will need to do the folowing: 6.1. Define the Cost - Allocation Base for each of the Production Support Activities. 6.2. Determine Resources Costs needed for each Production Support Activity. 6.3. Compute the number of cost driver units for each of the three products being produced by your company. 6.4. Allocate the costs of the Production Support Activities to the three cost objects - three products. 7. Compute the total manufacturing costs for each product under traditional costing system and ABC system. 8. Critically explain why costs are different in the two costing systems. Include an indication of which costs you think are most accurate and why. 9. Budgeting: 9.1. Set up the unit selling price and prepare Sales Budget. 9.2. Prepare Budgeted Income Statement. 10. Cost-Volume-Profit Analysis 10.1. Calculate Break-even sales volume (both in OMR and in total units) for each product.