QUESTION THREE a) An Activity based costing approach refines a costing system by focusing on individual activities (events, tasks, or units of work with specified purpose) as the fundamental cost objectives. It uses the cost of these activities as the basis for assigning costs to the other cost objects such as products or services. This depends on cost hierarchy in the organization. Required: List and discuss four levels of cost hierarchy. (5 Marks) b) Your company currently produces and sells four products. Alpha, Beta, Gamma and Delta. The following information relates to Period 3. vulienty the production overhead is absorbed using the machine-hour rate method and the following are the total production overhead costs for Period 3