The budgeted overheads and cost driver volumes of XYZ are as follows. Cost Pool Material procurement Material handling Set-up Maintenance Quality control Machinery Cost Driver No. of orders No of movements No. of set ups Maintenance hours No. of inspection No, of machine hours Budgeted Overheads (RM) Budgeted Volume 2 580,000 250,000 415,000 970,000 176,000 720,000 The company has produced a batch of 2,600 components of A.X-1S, its material cost was RM 130,000 and labour cost RM 245,000. ac mae 1,100 680 520 8,400 900 24,000 The usage activities of the said batch are as follows. Material orders is 26. Maintenance hours is 690. Material movements is 18. Inspection is 28. Set ups is 25. Machine hours 1,800 Required (a) Calculate the cost driver rates that are used for tracing appropriate amount of overheads to said batch [12 marks] (b) Calculate the cost of batch of components using Activity Based Costing. [28 marks] (c) Explain how activity-based costing systems can provide more accurate product costs than traditional cost systems. ram -221