a. Design of your overhead costing system for Smith's Chip Products (Crinkle Cut, Thinly cut and Oven-baked) Preparation of an ABC system. The ABC system must be tailored to your company and must relate to the manufacturing processes identified and described in Component 1 of this report. Your team needs to apply a four-phase approach to implement Activity Based Costing at your assigned organisation. You will need to provide: i. Estimate the amount of each indirect cost identified in Component 1 in your chosen product category. ii. Identify basic activities involved in the company's production process (we recommend no more than 6 activities), and using a driver relevant to each overhead cost allocate the manufacturing overhead costs to those production activities. Allocation of the overheads to each activity will result in activity cost pools. iii. Identify an appropriate driver for each activity cost pool and estimate the total budgeted incurrence of each. You also need to classify whether the activity cost pools are at the unit, batch, product or facility level iv. Calculate an overhead application rate for each activity.

a. Design of your overhead costing system for Smith's Chip Products (Crinkle Cut, Thinly cut and Oven-baked) Preparation of an ABC system. The ABC system must be tailored to your company and must relate to the manufacturing processes identified and described in Component 1 of this report. Your team needs to apply a four-phase approach to implement Activity Based Costing at your assigned organisation. You will need to provide: i. Estimate the amount of each indirect cost identified in Component 1 in your chosen product category. ii. Identify basic activities involved in the company's production process (we recommend no more than 6 activities), and using a driver relevant to each overhead cost allocate the manufacturing overhead costs to those production activities. Allocation of the overheads to each activity will result in activity cost pools. iii. Identify an appropriate driver for each activity cost pool and estimate the total budgeted incurrence of each. You also need to classify whether the activity cost pools are at the unit, batch, product or facility level iv. Calculate an overhead application rate for each activity