Chapter 4, Problem 10F15

To determine

Concept Introduction:

Activity Based Costing (ABC):

ABC costing method is generally used to allocate the overhead costs to the product using activity rates differently for each activity. Unlike traditional method, the ABC costing method does not use the plant wide overhead rate, rather it uses different allocation rate for different production activity.

To Calculate: The Overhead cost allocated on the basis of activity-based costing to product Z.