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Andrew Ltd has two products with budgeted costs and details as follows: **Page 5 of 7 Other data for the whole company and year is
Andrew Ltd has two products with budgeted costs and details as follows: **Page 5 of 7 Other data for the whole company and year is as follows: 5a) Using the information above calculate the cost per driver for each of the five activity cost pools (Activity Based Costing). (10 marks) 5b) Calculate the amount of overhead to be allocated to ONE unit of Bea. (6 marks) 5c) Calculate the full cost of ONE Bea. (5 marks) 5d) Which method of Full Costing would you recommend to Andrew Ltd, Traditional Absorption Costing or Activity Based Costing (ABC). Give reasons for your recommendation. (4 marks)
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