4 5 6 37 38 Question A1 GGG Plc has undertaken an activity-based costing exercise and has discovered the following information: Activity Activity Cost () Activity Cost driver Annual number of activity cost drivers Operating machinery Maintaining machinery Setting-up machinery 660,000 Machine hours 80,000 Maintenance hour 256,000 Machinery set-up 59,850 Purchase order 104,500 Quality inspection Purchasing materials Controlling quality Total 1,160,350 110,000 1,600 8,000 450 5,500 An order from a customer for 80,000 units of parts caused 14,500 hours of machining, 22 maintenance hours, 20 machinery set-ups, 35 purchase orders, and 12 quality inspections. The order used 50,000 of materials and 65,000 of dire labour. (a) Calculate the cost driver rate per activity (b) [5] Using the activity based costing method, calculate the total overheads to be [5] allocated to the customer order