Jackson Ltd - continued: The finance office (cost and management accounts) recently performed an 'activity-based production systems analysis for the fixed production overheads. The result is the table below: Cost Cost driver Total cost driver quantity per period Indirect production overhead recovery rate 80.00 Set up costs Production scheduling Quality control Depreciation Raw materials storage Total: 16.00 8.00 8,000 Set ups 1,600 Set ups 18,000 Inspections 8,000 Machine hours 2,400 Materials movements 38,000 100 100 2,250 800 1,200 10.00 2.00 A further analysis has produced the following indirect production overhead resource required for each product: Activity - Based Resource (Cost driver quantity) Requirement (by product) Order / product: Order 1101 'A' Order 1102 'B' Total Order 1103 'C' 30 Set ups 50 20 100 700 500 1,000 Inspections Machine hours 2,200 800 300 200 300 Materials movements 700 300 400 1,400 b. Recalculate the gross profits (by product an in total) after allocating fixed production overheads to products using an activity-based system 10 Marks The task 5 b. mark include marks allocated to short descriptive notes to workings (