Question 25 Long Ltd a Waterford based manufacturing company absorbs overheads using an activity based costing (ABC) system. The budgeted overheads for the coming year are: Machining Warehouse Quality Assurance Maintenance 2,632,500 948,750 607,500 567,000 4,755,750 The following information is also available Dept 1 Dept 2 Dept 3 Total Production Volume (units) Repair Hours Purchase Orders issued Machine Hours 30,000 15,000 22,500 67,500 7,800 18,900 3,450 600,000 450,000 300,000 1,350,000 9,000 750 2,100 1,500 1,200 1. Identify the major activities within the company and budgeted overhead associated with each activity Identify the cost driver and total volume of the cost driver associated with each activity identified in 1 above Calculate the cost drive rate for each activity identified in 1 above Calculate the total overhead cost apportioned to each production department Calculate the total overhead cost per unit of output for each production department 2. 3. 4. 5