Makcik Naimah Klassie Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to $1,000$ cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available:MacaroonSugarButtercreamProjected sales in units$500,000800,000600,000$PER UNIT data:Selling priceRM$0\mathrm{.}80$RM$0\mathrm{.}75$RM$0\mathrm{.}60$Direct materialsRM$0\mathrm{.}20$RM$0\mathrm{.}15$RM$0\mathrm{.}14$Direct laborRM$0\mathrm{.}04$RM$0\mathrm{.}02$RM$0\mathrm{.}02$B A C $301$ C o s t a n dM a n a g e m e n t A c c o u n t i n gCOURSE ASSIGNMENT MAY $2024$TERM

Hours per $1000-$unit batch:Direct labor hours$211$Oven hours$111$Packaging hours$0\mathrm{.}50\mathrm{.}50\mathrm{.}5$Total overhead costs and activity levels for the year are estimated as follows: ActivityOverhead costsActivity levelsDirect labor $2,400$ hoursOvenRM$210,0001,900$ oven hoursPackagingRM$150,000950$ packaging hoursRM$360,000$Required:a$)$Determine the activity$-$cost$-$driver rate for packaging costs. $[5$ marks$]$b$)$Using the activity$-$based costing system, for the sugar cookie:$($i$)$compute the estimated overhead costs per thousand cookies.$[5$ marks$]($ii$)$compute the estimated operating profit per thousand cookies. $[5$ marks$]$c$)$Using a traditional system $($with direct labor hours as the overhead allocation base$),$ for the sugar cookie: $($i$)$compute the estimated overhead costs per thousand cookies.$[5$ marks$]($ii$)$compute the estimated operating profit per thousand cookies. $[5$ marks$]$d$)$From the above calculations, explain$($i$)$the difference between the profits obtained from the traditional system and the activity$-$based costing system. $[5$ marks$]($ii$)$which system provides a better estimate of profitability.$[5$ marks$]$e$)$Explain whether activity$-$based costing systems always provide more accurate product costs than conventional cost systems.$[10$ marks$]$f$)$Explain how cost drivers are selected in activity$-$based costing systems.$[5$ marks$]$