Activity cost pool Cost drivers Material receiving and inspection Numberof material bundles Electricity Number of drilling jobs Material handling n12 handled Round o all your gures to two decimal places. 2.1 Prepare a summary for the budgeted product cost per unit for each product (A, B and G] for the {s merits) period ending 31 December 2032. where the unit cost for each of the cost elements is set out: In toms of the current method of overhead aJIocation 2.2 Prepare a summary for the budgeted product cost per unit for each product (A, B and G] for the (12 merits) period ending 31 December 20KB. where the unit cost foreech of the cost elements is set out by using the identied cost drivers and on the basis of ABC principles Question 2 ABC Ltd. has a single manufacturing process of which the tollowing overhead cost estimates are available tor the period ending 31 December 20x2: R Raw materials receiving and inspection cost 10 720 Eisctricity 23 400 Materials handiing cost 10 300 Total 58 500 Three products. namely A, B and C. are manufactured by labourers. The raw material arrives in bundles and is then processed further using electrical drills, which are operated by hand. The labourers are paid a wage ot R50 per hour. The following estimates are applicable for the period ending 31 December 20x2: Product A Product B Protllct C Units manufactured 2 200 1 050 000 Raw material received {total bundles} 11.00 0.00 10.00 Date per manufactured unit: Direct materiel {m2} 4.00 5.00 3.00 Direct material {R} 6.50 3.90 "(.00 Direct labour [minutes of drilling} 24.00 40.00 60.00 Number of electric drilling jobs 7.00 4.00 3.00 Overheads are currentlyr allocated to products by means of a rate based on labour hours. An activity-based investigation identied the following cost drivers