Instructions: All answers must be typed in and working must be shown.

QUESTION 3 REQUIRED Use the information provided below to answer the following questions: 3.1 Calculate a single overhead rate for the entire plant using machine hours as the basis for allocation. 3.2 Calculate the cost centre rates using activity-based costing (ABC). 3.3 Calculate the total overheads that would be allocated to Product B using ABC. INFORMATION Britar Ltd manufactures two products viz. Product A and Product B. The budgeted costs and estimated operating information are as follows: Budgeted costs: R Machine set-ups 937 500 Inspections 703 125 Materials handling 1 406 250 Materials procurement 1 640 625 Production 2 343 750 Total overheads 7 031 250 Operating information: Machine hours Material usage (kg) Machine set-ups Purchase orders Inspections Product A 112 500 375 000 2 250 18 750 3375 Product B 75 000 562 500 1 500 28 125 2 250 Instructions: All answers must be typed in and working must be shown