Bristol Electronics produces wide range of electronic products. The company has a labour based costing system that was introduced in the 1970s and is now considering implementing an activity based costing (ABC) system. Managers are concerned about how they should compare the ABC data with the existing costing system. Selected data from the management accounts for the year ending 31st December 2017. Cost data Total manufacturing overhead for year Total hours for year Direct labour cost per hour 1,000,000 60,000 hours 10 Data for 3 products only Annual production Material cost per unit Direct labour hours per unit Product A 1,000 units 5.00 Product B 2,000 units 6.00 11.50 Product C 15,000 units 7.00 10.50 1.00 ABC data for all products Cost pool/driver Number of set-ups Inspection time (hours) Machine maintenance (hours) Number of purchases Number of shipments Annual costs (s) 200,000 500,000 100,000 100,000 100,000 1,000,000 Annual volume 1,000 3,000 5,000 1500 500 Product A Product B 180 20 Product C 30 300 120 50 ABC data 3 products Number of set-ups Inspection time (hours) Machine maintenance (hours) Number of purchases Number of shipments 30 40 20 3 4 5 4 Determine the total overhead cost for Product A using the using the activity based data. Multiple Choice 9,133 O 20,000 21,667 21,000 careenabet