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asap plz midterm Quration 2-Activity Based Costing (20 marles - morested...

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Accounting

asap plz midterm
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Quration 2-Activity Based Costing (20 marles - morested time 20 minute) Planet Enterprise produces only two products, gadght and gimo. The information about the budgeted overhcad costs for 2020 is available below. 2020 Estimnted Overhead Costs Budgeted Production - Products are produced in a batch of 250 . Gadget and Gizmo have to be made in separate batches. - Gadget occupies 40% of the factory space. REQUIRED: a. Assume that Planet Enterprise applies overhead cost to products on the basis of direct labour hours. What is the overhead cost allocated to gadget and gizmo respectively. ( 6 marks) b. Planet Enterprise is considering using activity based costing to allocate its overhead costs. Determine the overhead cost per unit assigned to each product. ( 12 marks) c. Which method of allocation method would you recommend to Planet Enterprise and why. (2 marks)

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