Activity Based Costing (ABC) Company Alpha allocates overhead using traditional costing methods but plans to switch to ABC Company Beta is already using ABC Requirement 1 Identify and classify overhead costs into activity cost pools for Company Alpha Requirement 2 Allocate overhead costs to products using activity drivers for both companies Requirement 3 Discuss the benefits of implementing ABC for Company Alpha and potential improvements for Company Beta

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Question: Activity-Based Costing (ABC): Company Alpha allocates overhead using traditional costing methods but plans to switch to ABC. Company Beta is already using ABC. Requirement 1:

·Activity-Based Costing (ABC): Company Alpha allocates overhead using traditional costing methods but plans to switch to ABC. Company Beta is already using ABC.

Requirement 1: Identify and classify overhead costs into activity cost pools for Company Alpha.
Requirement 2: Allocate overhead costs to products using activity drivers for both companies.
Requirement 3: Discuss the benefits of implementing ABC for Company Alpha and potential improvements for Company Beta.

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