Acacia Patins Ltd Manufacturers Paint And Uses An Activitybased Product

Acacia Patins Ltd manufacturers paint and uses an activity-based product costing system. The table overleaf lists the labour and overhead costs of the Mixing Centre for the current year, and their resource drivers.

1. Complete the following table to calculate the cost of the activity ‘Load mixer’ for the current year. This activity is performed in the Mixing Centre
Acacia Paints Ltd Activity Load Mixer

2. Why would Acacia Paints use an activity – based product costing system that assigns labour as well as overhead costs to activities?
3. How would the management accountant obtain details of the activities performed and the quantity of resource drivers used by the activities in the Mixing Centre?

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