There is a bit of confusion in this question. Which says which statement of the following about Activity Based Costing is true? So statement number 1 is about (Traditional costing) and statement number two is about ABC, so answer 1 should be correct but not both as the first is about Traditional costing ??

No. This was a real exam question and the wording is fine. The first statement is a statement of fact that is comparing traditional absorption costing with absorbing the overheads using ABC principles.

Jstudent says

In question 3 of 5 how do you get the number 115,200 ?

John Moffat says

The total number of labour hours for P are 2,400 units x 8 = 19,200

The total number for Q are 9,500 x 10 = 96,000

So the total number of labour hours budgeted is 19,200 + 96,000.

Jstudent says

Thank you

ahmed5050 says

80%

Maribs@5578865 says

I got 60% on my 1st quiz. Not what I expected but it’s pretty good for a 1st timer I guess. Though the calculations are confusing

Bukr says

There is a bit of confusion in this question. Which says which statement of the following about Activity Based Costing is true?

So statement number 1 is about (Traditional costing) and statement number two is about ABC, so answer 1 should be correct but not both as the first is about Traditional costing ??

John Moffat says

No. This was a real exam question and the wording is fine. The first statement is a statement of fact that is comparing traditional absorption costing with absorbing the overheads using ABC principles.

roshpatel says

Got 60% in first attempt for this, Getting confused with the calculation questions.

In question 3 how do you get 192000/8? how do you arrive at 8?

John Moffat says

There are a total of 8 inspections (5 for P and 3 for Q)