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

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