Laint Saurant Designer Bags Pty Ltd manufactures two leather bags products: The Supreme and The Glamour. The company pools costs into three activities (costs pools). The indirect cost and the driver details for each of the manufacturing activities for the month along with other information is provided below:

1. Under the TRADITIONAL costing method, using Direct Labour Hours as the cost driver, the indirect costs would be applied at the rate of (2 marks)

Select one:

a. Insufficient information has been provided; and the indirect cost rate cannot be determined.

b. $707.17 per direct labour hour

c. $595.93 per direct labour hour

d. $323.40 per direct labour hour

2. Under the Activity Based Costing (ABC) method, the indirect cost rate for each of the activities; Design, Cutting and Assembly respectively is; (3 marks)

Select one:

a. $260, $204.44 & $145

b. $245, $165 & $172

c. $336, $167.20 & $224

d. $136, $223.70 & $300