5:57 >> You Just now 8 Frill 30% Copytech Ltd. sells and services photocopying machines. The company's sales department sells the photocopying machines and consumables while the service department provides an after sale service to customers. Currently, Copytech Ltd. uses a single overhead absorption rate to charge overheads based on total sales revenue from copy charges. However, the service manager has proposed to change to activity based costing (ABC) system and the following information has been obtained Activity Cost driver Annual overheads Sh.'000' Customer account handling Number of customers 1,260 Planned maintenance scheduling Number of planned maintenance visits 4,800 Unplanned maintenance scheduling Spare parts procurement Number of unplanned maintenance visits Number of purchase orders 1,470 2,430 Other overheads Number of machines 6.000 15,960 Charge per copy (Sh.) Small 0.30 Photocopier machine-size Medium Large Average number of copies per year per machine 60,000 0.40 120,000 180,000 0.50 Number of machines 300 800 500 Planned maintenance visits per machine per year Unplanned maintenance visits per machine per year 4 6 12 1 1 2 Small Medium Large Total number of purchase orders per year 500 1,200 1,000 Cost of parts per maintenance visit (Sh.) Labour cost per maintenance visit (Sh.) Additional information: 1,000 3,000 4,000 600 800 1,000 1. Each customer has a service contract for two machines on average. 2. The after sales service includes planned maintenance of the machines and repairs in the event of a machine breakdown. 3. Service department customers are charged an amount per copy based on the size of the photocopier machine. Required: The annual profit per photocopier machine for-each of the three sizes of machines, using: i) The current system ii) Activity based costing (ABC) system. O