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Job Costing Activity based costing Currambine Pty Ltd manufactures two products, Product C and Product D. In the current year Currambine produced...

Job Costing Activity based costing


Currambine Pty Ltd manufactures two products, Product C and Product D. In the current year Currambine produced 4,000 units of Product C and 2,000 units of Product D. The Company uses normal costing and activity-based costing (ABC) to allocate overheads. The following are the budgeted activity rates calculated for its three (3) activities:


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Actual data relating to these activities for the current period are given below:


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Required:

1.          Calculate the unit manufacturing overhead cost for each product.           

2.          a. Classify each of the activity according to the cost hierarchy level; and

b. specify a possible allocation base/ cost driver.

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3.       Calculate for each activity and in total:

a.    The amount of overheads over or underallocated,

b.    specifying clearly whether the amount is over or under allocated

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