For Gourmet Popcorn

Factory Overhead: Outline possible indirect or overhead costs the company may need to account for, and identify the type of costing the company might use for these costs.

• If the company decides to use activity-based costing (ABC), what are some activity bases (cost drivers) it might use to allocate these costs?
• Recommendation: Based on your analysis, recommend a costing method for the company, and explain why you think this method will work best for the business.