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please help, its due today...and type please QUESTION 3(12 MARKS) XYZ Cc manufactures a variety of products for the local market. The company has been
please help, its due today...and type please
QUESTION 3(12 MARKS) XYZ Cc manufactures a variety of products for the local market. The company has been using labour hours to calculate an overhead allocation rate. The total budgeted overhead for the year is N$955 980, the labour hours are estimated at 5 500 hours and machine hours are estimated at 5 000 hours. The newly appointed financial director proposed that the traditional costing system should be changed to an Activity Based Costing (ABC) system. The management accountant provided you with the following information relating to the overheads: Cost pool Budgeted Overhead expense Cost driver and activity level Set-ups N$169 500 500 set-ups Quality control and testing N$222 600 1 500 quality tests Material ordering N$192 780 1 620 orders Packaging and dispatch N$68 400 192 packages Labour related activities N$126 500 5 500 labour hours Machine related activities N$176 200 5 000 machine hours Total Budgeted overhead. N$955 980 REQUIRED 3.1 Compute an overhead allocation rate, using traditional costing methods, based on: 3.1. Labour hours 3.1. Machine hours 3.2. Compute cost driver rates using the principles of activity based costing. TOTAL MARKS MARK 3 3 6 12Step by Step Solution
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