Hi, I have done the workings for A, B and C. Attached are my workings. Please check.

However, I need help on question D and E. Thanks!

SECTION B Answer TWO questions from SECTION B (30 marks per question) QUESTION 6 Badger Company uses a traditional activity-based costing system to assign 350,000 of committed resource costs for customer service on the basis of the following information gathered from interviews with customer service personnel: ACTIVITY TIME ESTIMATED COST PERCENTAGE DRIVER QUANTITY Process sales order 65% 6,250 customer orders Process customer complaints 5% 250 customer complaints Perform customer credit checks 30% 1,500 credit checks 100% Required: a) Compute the activity cost driver rates using this system. [5 MARKS] AND b) Suppose instead that Badger uses time-driven activity based costing to assign the 350,000 of committed resource costs to the three activities. Compute the time-driven activity cost-driver rates assuming 8,750 hours of useful work and the unit time estimates that follow: ACTIVITY Process sales order Process customer complaints Perform customer credit checks UNIT TIME (HOURS) 0.65 2.5 2.0 [5 MARKS] AND c) Suppose that the quantities of activities this period are 6,250 customer orders, 250 customer complaints, and 1,500 credit checks. Using the information and activity cost driver rates developed in b), determine the cost assigned to each of the activities and estimated hours of unused capacity as well as the associated cost. (10 MARKS] AND Question 6 continued overleaf PTO Question 6 continued d) After evaluating the information calculated for c) above, what actions might managers take? [5 MARKS] AND e) Explain why the activity cost driver rates computed in (a) are different from the rates computed in (b). [5 MARKS] a) Activity Cost Driver Rate Activity Activity Cost Estimated Cost Cost Per Unit of Driver Quantity Activity Driver 6,250.00 36.40 250.00 70.00 Process sales order Process customer complaints 227,500.00 17,500.00 Perform customer credit checks 105,000.00 1,500.00 70.00 350,000.00 b) ABC Method Activity Process sales order Process customer complaints Perform customer credit checks Per Unit Unit Tome (Hours) Cost Per Unit 0.65 26.00 2.50 100.00 2.00 80.00 c) Product Cost Activity Practical capacity used 88% Process sales order Process customer complaints Perform customer credit checks Total Cost Per Unit Unit Time (Hours) Driver Quantity Total Hours Product Cost of Activity Driver 0.65 6,250.00 4,062.50 162,500.00 26.00 2.50 250.00 625.00 25,000.00 100.00 2.00 1,500.00 3,000.00 120,000.00 80.00 7,687.50 307,500.00 Unused Capacity Unassigned Cost 1,062.50 42,500.00