Boxes Ltd manufactures a variety of special packaging boxes used in the pharmaceutical Industry The company's Melbourne plant is semi-automated, but the special nature of the boxes requires some manual labour. The accountant has chosen the following overhead activities, activity drivers and costs per unit of activity driver for the plant's product costing system. Quantity of Annual Cost per unit of activity Raw material costs 20. of material cost $ 200 000 $1600 600 Purchasing storage and material handing Engineering and product design 100 000 5000 520 per hour Hours in de department Machine stup 70 000 Production runs 570 per production 300 000 100 000 Machine hours s per hour depreciation and maintenance Factory depreciation 200 000 100 Ohr Machine Hours S2 per hour and utilities Other manufacturing 150 000 100 000hr Machine hours 51.50 per hour ARABRO Two recent production orders had the following requirements: 20 000 units of box A52 10 000 units of box A29 Direct labour hours 21 Raw material cost $40 000 $35 000 Hours in design department 10 25 Production runs 2 Machine hours 24 20 Required: a) Using ABC, calculate the total overhead that should be assigned to each of the two production orders, AS2 and A29. Present your answer in a format similar to the following table below: Page 4 of 4 Activity BOX AS BOX A29 b) Calculate the overhead cost per box in each order. c) Suppose the Melbourne plant used a single plant wide predetermined overhead rate based on direct labour hours. The direct labour budget was 4 000 hours. Calculate the predetermined overhead rate per direct labour hour Calculate the total overhead costs that would be assigned to the order for box A52 and the order for box A29 Calculate the overhead cost per box in each order d) Why do the two product costing systems (.e. ABC and a single plant wide overhead rate) resulted in great differences in overhead costs per box