Explain factory overhead and the difficulty in allocating this to the products.

2.Describe the two cost systems used in allocating factory overhead.

3.Demonstrate how to compute for predetermined overhead rate under the normal cost system.

4.Demonstrate the application of the predetermined overhead rate using the traditional based costing.

5.Explain the rational in using Activity Based Costing and its advantage over the traditional based costing.

6.Demonstrate the application of the activity rate using activity based costing.