QUESTION 2 Teguh Electronics Sdn_ Bhd. (TESB) produces two oven models: X-200 Year 2020 new model X-100 Year201001dmode1 at R-M90 The company currently uses a fraditional costing methmi which would aggregate the direct material costs, direct labour costs, machine usage costs manufacturing overhead costs as pall of the products' total manufacturing costs. Direct labour cost is at u 12 per hour and machine usage cost is at RAIIS per hour Estimated manufactumg overhead cost is RM4,SOO ,OOO and allocated on the basis of machine hours The CEO suggested for the company to concentate marketing efforts on the X-200 model and to begm phasing out the X-IOO model. The CEO would like to have an activity-based costing (ABC) analysis to be canied out before making any decisions _ The followmg production and cost data are available for analysis: PER UMT Data Direct Material Costs Direct Labou Hours Machine Hows Units Produced Overhead Cost x-:oo 8.0 MH x-.'00 22 ooo x-100 R_MfS4 DLH 40 MH x-100 Oven Models Activitv Cost Pool Control Purchase Orders 942.000 860,000 1 240 ooo 57,600 ooo Cost Drivers No of solder oints No of shi ments No o No of orders Machine hours No of set x-:oo 1 185 ooo 16,200 56 200 so 100 176,000 16000 x-100 3SiOOO 8,800 21 oo 80 16,000 14 ooo Selling and general admlmstrative expenses unit sold are R2v1265 for X-200 and RM24450 for X-100 respectively.