Chetna runs a business printing logos on sweatshirs. The sweatshirts come in two types. Standard and Superior. The seling price is set at cost plus 30%. The following information is avalable for the year. REQUIRED (a) Calculate an coverhead absorption rate based on labour hours. Additional information Staff printing the logos are paid $10 an hour. REQUIRED (b) (1) Calculate the folal cost allocated to each type of sweatshirt. [4] (ii) Caicalate the selling price for each sweatshirt. Additional information Chetna has suggested that it would be beter to alocate the machine set up cost to each product based on the number of times the machine is set up. The mackine has to be set up each time there is a diferent logo. During the year the machine was set up 600 times for Standard sweatshirs and 975 times for Superior sweatshirts. Other overheads are still allocated on the basis of labour hours. REQUIRED (c) (i) Calculate the total costs allocated to each fype of sweatshirt when machine set op costs are alocated using the number of set up times.- [4] (ii) Calculate the revised seiling price for each type of sasuatshint. (ai) Calculate the change in selling price for each type of sweatshirt. [2] 131 (d) Explain three diflerences between activity based costing and absoepton costing. [6] (e) Advise Chetna which method she should use. Justly your answer. [3] [Total: 25]