1. Using activity-based costing, compute the product cost for each product. Show all calculations and clearly label your answer.

Basic Wedding Cake

Multi-layer Wedding Cake

Custom Wedding Cake 2. Compare the total manufacturing overhead cost and the product cost for each product under both the job-order costing method and the activity-based costing method. Which costing method would you recommend to Mr. Suncat for Suncat Cake Shop and why? Total overhead for a basic wedding cake = $20.20

Total overhead for a custom wedding cake = $29.04

Total overhead for a custom wedding cake = $70.33