I put the full question, so I'm not sure what else to add.

It is important to note that this is one full question and not two separate ones. All of the information should be provided.

production departments using the most appropriate cost allocation basis and calculate the total overhead costs for the production departments. (10 marks) PART 2: FULL COSTING Based on customer orders, the company is planning to produce two product lines in the next year. The management develops the budget based on the following information regarding the direct cost of each set of furniture: b. Using your results from part (a), calculate the full cost for each unit of specially designed sofa using the traditional costing method. Due to the unique features of these premium sofa range, both the production departments are labour intensive. (8 marks) c. Due to a reduction in customer orders and recent increases in raw material pricing for the Deluxe sofa range from its overseas supplier, management is considering the adoption of activity-based costing (ABC) as experience shows that different customer orders consume different levels of resources. Management estimated that in the following year, the total overhead costs can be allocated into three cost pools based on the cost activities presented below. Page 3 of 6 SECTION B Answer ONE question out of a choice of two. Total 40 marks Requirements: - You will need to show all workings and provide notes for your calculations. - If necessary, round numbers to the nearest two decimal places (e.g., 5.13 instead of 5.132 or 5.126 ). Question 1 Jupiter Ltd. is a premium furniture manufacturer that produces quality furniture based on customer orders. It has two production departments (Assembly and Finishing) and a service department (Maintenance). Due to the pandemic, there has been a drop in customer orders for its Deluxe sofa range and the Company is considering discontinuing this range as it is very costly to source one of the main fabric materials from its overseas supplier. All specific overheads have been allocated to these departments. Next year's budgeted general overheads are as follows: All departments are housed in the same premises, the details of which, together with further additional information are provided below: Assembly Finishing Maintenance Total Allocated overheads: Specific to each department, 20.200 16,400 11,425 48,025 Additional information: PART 1: OVERHEAD ALLOCATION a. Prepare a table to calculate the total overhead costs budgeted for each department by using a suitable basis to apportion the general overheads between the three departments. Apportion the service department's overhead costs to the PTO Page 2 of 6 Use the ABC method to calculate the full cost for each unit of specially designed sofa. (12 marks) d. Based on your results from parts (b) and (c), calculate the profit margin for each unit of specially designed sofa under the traditional costing method compared to the ABC method. Briefly comment on the profitability of both products and cost allocation methods used in your calculations. Provide your rationale on whether the Company should discontinue the Deluxe sofa range. (10 marks) (Total 40 marks)