An online sports retailer warehouses various sport equipments and sell the online via webpages.The following are the annual budgeted costs and activity rates of various overheads:-

WarehousingRM2,000,000 @ RM1 per RM1 value of average inventory

CourierRM4,000,000 @ RM30 per kg

AdvertisingRM5,000,000 @ ?

Website DesignRM100,000 @ RM500 per webpage

PurchasingRM 500,000 @ RM5,000 per Purchase Order

AdministrationRM1,000,000 @ ?

a) Group the activities according to unit, batch, product, or facility level cost.

b) Badminton rackets weighed a total of 1,000 kg and cost RM200,000. To sell them online requires an average stockholding of RM20,000 inventory at any one time, 20 webpages, and 30 orders.Find the total cost of selling the badminton rackets online.

c) Discuss the following statement: "The product costs reported in audited financial statements is not the product cost estimated through ABC" .