I need question B answering with a total of 1500 words for both parts. No plagurism and no hand written or picture answers please.

Question: Frantic Plc assembles three types of motorcycle at the same factory: the 50cc Sunshine, the 250cc Roadster and the 1000cc Fireball. It sells the motorcycles throughout the world. In response to market pressures Frantic Plc has invested heavily in new manufacturing technology in recent years and, as a result, has significantly reduced the size of its workforce. Historically, the company has allocated all overhead costs using total direct labour hours but is now considering introducing Activity Based Costing (ABC) Frantic Pic's accountant has produced the following analysis Annual Output Annual direct labour Selling Price Raw material (units) hours ( per unit) cost( per unit) Sunshine 2,000 200,000 4,000 400 Roadster 1,600 6,000 600 220,000 80,000 Fireball 400 8,000 900 The three cost drivers that generate overheads are Deliveries to retailers - the number of deliveries of motorcycles to retail showrooms Set-ups - the number of times the assembly line process is re-set to accommodate a production run of a different type of motorcycle -- the number of purchase orders. The annual cost driver volumes relating to each activity and for each type of motorcycle are as follow Number of deliveries Number of set-ups Number of purchase orders Purchase orders To retailers Sunshine 100 35 400 Roadster 80 40 300 Fireball 70 25 100 The annual overhead costs relating to these activities are as follows: Delivenes to retailers Set-up costs Purchase orders 2.400.000 6.000.000 3,600,000 All direct labour is paid 15 per hour. The company holds no stocks Note: Please show and explain all your workings clearly [Maximum Word Count 500 words/ (b) Write a report to the directors of Frantic Plc, as its management accountant. The report should: (1) Evaluate the labour hours and the activity-based costing methods in the circumstances of Frantic Plc, and (30 marks) [Maximum Word Count 750 Words/ (ii) Examine the implications of activity-based costing for Frantic Plc, and in so doing evaluate the issues raised by each of the directors. (20 marks) Maximum Word Count 750 Words/ Total (100 marks) Total 100 Marks