Takulah Co. Ltd has traditionally allocated its overhead
Takulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing:
Required:
i) How much overhead would be allocated to each unit under the traditional allocation method?
ii) How much overhead would be allocated to each unit under activity-based costing?
iii) Would you recommend a change to ABC costing for this company? Justify your answer