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exercise 4 and thank you QUESTION 4 (20 MARKS) Skinz Care is a cosmetic manufacturing company. The company's most popular product is called Shiny cream.

exercise 4 and thank you

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QUESTION 4 (20 MARKS) Skinz Care is a cosmetic manufacturing company. The company's most popular product is called Shiny cream. The following are Shiny cream data for next year budget. ACTIVITY COST DRIVER COST POOL COST DRIVER BND VOLUME PER YEAR Purchasing Purchase orders 120,000 2,500 orders Cleaning Batches produces 130,000 6,500 batches Material handling Material movements 155,000 15,000 moves Machining costs Machine hours 150,000 40,000 hours TOTAL 555,000 Cost driver information are as follow: Purchase order 60 orders Output 90,000 unit Batches produced 350 batches Materials movements per batch 15 moves Machine hours per unit 0.5 hour Required: a) Calculate the overhead rate using activity-based costing principle. (4 Marks) b) Evaluate the activity-based overheads cost for Shiny cream. (5 Marks) c) Determine the budgeted overhead costs using traditional costing method (absorbed overhead using machine hours). (3 Marks) d) State the FOUR (4) steps involves in activity-based costing method. (4 Marks) e) Discuss TWO (2) purposes of management accounting. (4 Marks)

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