Task 6: Activity based costing Due: Week 7 Marks: 20% Submitting a text entry box Attempt any one: Case 1: Axis makes gold and silver articles and operates at capacity. Axis does large custom orders, such as the participant gold articles for the David Jones. The controller has asked you to compare plant-wide, department and activity-based cost allocation. Axis Gold Articles Budgeted Information For the Year November 30, 2018 Forming Department Gold Articles Silver Articles Total Direct Material $ 13,000 $ 11,250 $ 24,250 Direct Labour $ 15,600 $ 9, 000 $ 24,600 Overhead Costs - Setup $ 12,000 - Supervision $ 10,386 Assembly Department Gold Articles Silver Articles Total Direct Materials $ 2,600 $ 9,375 $ 11,975 Direct Labour $ 7,800 $ 10,500 $ 18,300 Overhead Costs - Setup $ 23,000 - Supervision $ 10,960 Other Information follows: Setup costs vary with the number of batches processed in each department. The budgeted number of batches for each product line in each department is as follows: Gold Articles Silver Articles Forming Department 40 116 Assembly Department 43 103 Supervision costs vary with direct labour costs in each department. 1. Calculate the budgeted cost of gold and silver articles based on single plant-wide overhead rate, if total overhead is allocated based of total direct costs. 2. Calculate the budgeted cost of gold and silver articles based on departmental over rates, where forming department overhead costs are allocated based on total direct costs of the assembly department. 3. Calculate the budgeted cost of gold and silver articles if Axis allocates overhead costs in each department using activity-based costing.