1. calculate the total budgeted manufacturing overheads for the next financial year.

Assuming a manufacturing overhead of R1 200 000:

2. Calculate the cost driver rate for set ups

3. Calculate the cost driver rate for machining

4. Calculate the cost driver rate for inspection

5. Calculate the cost driver rate for dispatch

Mars (Pty) Ltd manufactures two products, Acas and Bebs at their factory in Salt Rock Industrial Park, north of Durban. The company has three production departments - Cutting, Assembling and Fimshing. It has two service departments - Stores and Maintenance. Mars (Pty) Ltd currently uses volume-based rates to absorb its manufacturing overheads into the product cost. The mamufacturing overhead rates are as follows: Cutting R30 per machine hour (MH) Assembling R10 per direct labour hour (DLH) Finishing R20 per direct labour hour (DLH) The following information relates to the budget for each product for the next financial year. Aca Beb Units - production and sales 4000 2000 Manufacturing time: Cutting 4 DLH 2 DLH 6 MH 3 MH Assembling 6 DLH 4 DLH OMH Finishing 3 DLH 1 DLH | O MH Set up Mars (Pty) Ltd is considering implementing an Activity Based Costing system and has undertaken the following analysis Cost pools % of MO Cost driver Aca Beb 20% Number of set ups 20 in total 80 in total Machining 50% Machine hours As per existing As per existing MH MH Inspection 10% Number of inspections Receiving 5% Requisition requests 15 000 in total 10 000 in total Despatch 5% Customer orders 40 in total 20 in total Maintenance 10% Maintenance hours 10% of Aca's total 10% of Beb's total machine hours machine hours MO-manufacturing overheads per unit 4 per unit