Question
Using traditional costing, using direct labours as a cost driver, calculate: -Total direct labour hours -calculate Overhead Absorption Rate (OAR)per labour hour -calculate overhead cost
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Using traditional costing, using direct labours as a cost driver, calculate:
-Total direct labour hours
-calculate Overhead Absorption Rate (OAR)per labour hour
-calculate overhead cost allocated per Product A, B and C
-calculate overhead cost per unit for Product A, B and C
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Using Activity Based Costing, calculate:
-Overhead absorption rate for each cost driver
-calculate overhead cost allocated per Product A, B and C
-calculate overhead cost per unit for Product A, B and C
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Do a profitability analysis for all products using : Traditional method and ABC method
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