Bosche Limited manufactures two models of microwaves to cater for different consumers. Model 100 has basic functions, and mainly reheats food. Model 200 is a more sophisticated model including convention and steam oven options as well as more capacity and power (wattage) and more stylish design and touch settings.

The following overhead cost pools and activity drivers have been determined .

Overhead Cost Pool	Budgeted Overhead Cost	Activity Driver
Machine set-ups	$300,000	Number of setups
Material handling	$120,000	Number of units of materials used
Waste control	$20,000	Kilos of waste
Quality control inspection	$25,000	Number of inspections
Other overhead costs	$180,000	Labour hours

15,000 units of the MODEL 100 is produced which have the following production requirements:

No of Machine set-ups	20 Set-ups
Materials used	50,000 units
Waste produced	300 kilos
Number of inspections	40 inspections
Labour hours	1,000 hours

6,000 units of the MODEL 200 is produced, which have the following production requirements:

No of Machine set-ups	30 Set-ups
Materials used	70,000 units
Waste produced	100 kilos
Number of inspections	120 inspections
Labour hours	500 hours

Required

1. If Bosche Limited used a single, predetermined overhead rate based on labour hours, calculate the overhead rate per unit to be assigned to each microwave model. Round all calculations and rates to 2 decimal places where applicable.

2. If Bosche Limited was to adopt Activity Based Costing (ABC) use the table below to calculate

(i) The total cost driver and allocation rate for each overhead cost pool

(ii) The total overhead cost allocated to each model for each overhead cost pool

(iii) The overhead cost per unit.