10:05

10:05 Yesterday 15:29 SECTION B: ANSWER THREE QUESTIONS FROM FOUR QUESTION FOUR CONTINUED (c) The E200,OOO overhead has been analysed as follows: 68,OOO of the cost relates to wood cting. Wood cutting overheads are largely the same for each product made. E75,OOO of the cost relates to fitting. This overhead is driven by the materials (based on their value) used on the products. E35.OOO of the cost relates to glazing. Overheads are based on number of windows per product. Other overheads of 222,000 can be allocated by labour hours. Re-calculate the costs and profits for all three product lines using Activity Based Costing principles. (Show your working) (9 marks) (d) Compare the results of the (b) and (c) above and analyse the differences between the use of traditional overhead absorption costing and actjvitv base < costing for Pigeon Ltd. (8 marks) (Total 25 marks) Edit