Activity Based Costing - Exercise 1.0

JrCheffeya is in the business of producing cakes for various events.  Currently she is making 2 kinds of custom made cakes to her client, birthday cake and wedding cake.

Below are the cost related to the production of both cakes;

	Birthday cake	Wedding cake
Units produced/mth	350	150
Machine OH cost/mth	RM40,000
Quality control OH cost/mth	RM11,000
Production machine hours	200	300
No of inspection	350	450

Required:

Calculate cost of production using traditional coating and Activity Based Costing.