(1) Determine the overhead activity cost allocations to products A and B (using the activity proportions calculated in column 4) by completing TABLE 3. (iii) Determine the total overhead allocations to products A and B. (iv) Find the per unit product overhead cost allocations for each Activity Product A Product B Activity Centre 1 Machining 15 x 100 000 150 000 15 x 100 000 600 000 Activity Centre 2 Machining Product Assembly Materials Procurement Activities Product Materials Purchase Product Material Reception Storage Materials Issued Production Run Support Activities Production Run Planning Machine Setting Up Tooling Statistical Quality Control Total TABLE 3 Is This Going to help Activity involved Allocated Cost Activity Cost Quantity of Cost Cost Driver to Produce Product of Activity Driver Drivers Unit cosurate per Cost Driver - Activity Centre 1 Machining 750 000 Machine Use hours 500 OXXO (100 000 prod A 400 000 prod B) Activity Centre 2 Machining 500 000 Machine Une hours 250 000 Product Assembly 400 000 Direct labour hours 100 000 Materials Procurement Activities Product Materials Purchase 600 000 Purchase Orders 5000 12o Product Material Reception/Storage 240 000 3000 Number of invoices or Material Delivery Notes 80 Materials Issued/Production Run 225 000 Number of Production runs 1500 150 Support Activities Production Run Planning 150 000 1500 Number of Production runs 1 00 30 000 Machine Setting Up/Tooling Setting up/tooling labour hours 750 40 10 000 400 atistical Quality ontrol Sample inspection and Test Cost 25 TABLE 2 (b) TABLE 2 shows the cost drivers, the quantity and unit cost of the cost driver, and total activity cost. For two products A and B it is found that: The direct labour hours for products A and B are the same. It takes approximately four times as many machining hours in both cost centres to produce product B as product A Product A requires one quarter of the materials purchased for B. Product Arequires one third of the total Delivery notes/invoices. Product A has issued one third of the total materials issued per production run. Product A has issued one half of the planning per production run of that required by Product B. Product B requires twice as many machine set-ups as product A. The products have the same number of quality control inspection