Question: A Calculate the overhead rate for each of departments A

a. Calculate the overhead rate for each of departments A, B and C and calculate the product cost for HiVol and LoVol.
b. Calculate the activity-based overhead rate for each cost pool and calculate the product cost for HiVol and LoVol.
c. Compare the product costs using activity-based costing with the product cost that allocates overhead on the basis of direct labour hours. Why is there a difference?

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  • CreatedSeptember 15, 2015
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