Question 4

(a)

Assume that a traditional costing system allocates the overhead costs using

labour hours. As the only one cost pool, calculate the cost of a unit of A and

B using the traditional costing system. (8 marks)

(b)

Assume that the Activity Based Costing system uses five activity cost pools

instead of the one, calculate the cost of a unit of C and D using an Activity

Based Costing system. (9 marks)

(c)

benefits of Activity Based Costing system and explain the differences in

results in requirements (a) and (b) above (3 marks)

CAN GIVE AN EXAMPLE FOR ABOVE QUESTION?