Raisin cake Layered carrot cake Direct costs €0.740 €1.100 Indirect costs (€0.780 × 0.9648) Indirect costs (€2.150 × 0.9648) 0.753 2.074 €1.493 Raisin cake has a higher actual cost with the more accurate five-activity area adjustment, as it makes proportionally more use of the activity areas with underallocated overhead (mixing and cooking. Layered carrot cake has a lower cost under the more accurate five-activity area adjustment, as it makes proportionally more use of the activity area with the largest overallocated cost (creaming/icing).
