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Note: Your memo should be prepared in a good style and show effective skills in written communication and 'quality of information' asperts Parker Ltd -

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Note: Your memo should be prepared in a good style and show effective skills in written communication and 'quality of information' asperts Parker Ltd - continued: The finance office (cost and management accounts) recently performed an 'activity - based' production systems analysis for the fixed production overheads. The result is the table below: A further analysis has produced the following indirect production overhead resource required for each product: Activity - Based Resource (Cost driver quantity) Requirement (by product) Task: 5 a. Parker Ltd Explanation of activity - based costing (ABC) (To max 10 marks) Activity - Based Costing (ABC) Parker Ltd Task: 5.b. Recalculate gross profit (and margin) after allocating fixed production overheads using an ABC system (To max 6 marks) Notes to Marginal / ABC profits (Workings / Observations - To max 4 marks): Note: Your memo should be prepared in a good style and show effective skills in written communication and 'quality of information' asperts Parker Ltd - continued: The finance office (cost and management accounts) recently performed an 'activity - based' production systems analysis for the fixed production overheads. The result is the table below: A further analysis has produced the following indirect production overhead resource required for each product: Activity - Based Resource (Cost driver quantity) Requirement (by product) Task: 5 a. Parker Ltd Explanation of activity - based costing (ABC) (To max 10 marks) Activity - Based Costing (ABC) Parker Ltd Task: 5.b. Recalculate gross profit (and margin) after allocating fixed production overheads using an ABC system (To max 6 marks) Notes to Marginal / ABC profits (Workings / Observations - To max 4 marks)

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