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BUACC5933 Cost And Management Accounting

tag 0 Download 9 Pages / 2,172 Words tag 04-11-2020
  • Course Code: BUACC5933
  • University: Federation University
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  • Country: Australia


Total annual overhead cost is estimated at $960,000. Overhead cost allocated to the processing activity cost pool is $640,000, and $320,000 is allocated to the packaging activity cost pool.
a) Calculate the overhead rate using the traditional (factory-wide) approach and allocate the total overhead costs to the two products using this method..
b) Calculate the overhead rates using the ABC approach and allocate the total overhead costs to the two products using this method.
c) Explain how an organisation should select an appropriate “cost driver” for an activity cost pool.
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Total 9 pages

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