A budget for 2000 GAS and 500 ELECTRIC has been wat Required Question 4 Cooktad manuactures two types of stoves, GAS and ELECTRIC. The company is currently absorbing overheads on machine hours bases totalling 135,000 per annum Cook LTS has a pricing strategy of total cost plus 25% mark-up. The management accountant recommended applying activity based costing as an alternative to absorption coating. The information below has been analysed by the accountant in relation to the activities and their cost driver Identify the TOTAL COST and PRICE for each product of GAS based costing ELECTRIC Costs Cost driver Set-up costs 30,000 250 set-ups Handling charges 50,000 400 movements End of Examination Other overheads S5,000 5000 direct labour hours Total overheads 135,000 Details of the current volume of units produced are: Operational Information ELECTRIC Set-ups Movements Direct labour hours 5,000 Information per unit are as follow Cost of Material 20 Labour hours spent 2 hours