A. Prepare a table showing the predetermined factory overhead rate based on each of the following: direct materials cost, direct labour cost, direct labour hours, machine hours, and units of production.

B. The following data relate to Job 6543 which was completed during the year: materials costs $280, direct labour costs $720, direct labour hours 45, machine hours used 1200. Job 6543 consisted of 400 identical units. Prepare a table summarising the amount of factory overhead which would have been assigned to Job 6543 using each of the bases given in requirement A. Calculate the cost per unit for Job 6543 using each of the factory overhead bases.

C. Which overhead rate is the most appropriate and why?

D. Management is considering introducing an activity-based costing (ABC) system. How would such a system affect the way the cost of Job 6543 is determined? Should management introduce an ABC system? Explain your answer.