account based costing

9 Green Seduction Blend You Matcha Blend Budgeted Sales 2,000 kg 100 000 kg Batch six 900 bg 10 000 kg Setups 3 per batch 3 per balch Purchase reader ure 500 kg 25,000 kg Ranting time I hour per 100 kg I hour per 100 kg Blending time 0 5 hours per 100 kg 5 hour per 100 kg Packaging time 0.1 hours per 100 kg I hour per 100 kg Required 1. Using Davids Tea's current costing system a. Determine the company's predetermined overhead rate using direct-labour cost as the ungle cost driver. b. Determine the full product costs and selling prices of one kilogram of Green Seduction Blend and one kilogram of Yuzu Matcha blend. 2. Develop a new product cost, using an Activity Based Costing (ABC) approach, for one kilogram of the two different blends of tea. 3. What are the implications of the ABC system with respect to a. The use of direct labour as a basis for applying overhead to products? b. The use of the existing product-costing system as the basis for pricing