only number a from question 2.

Question 2 (22 Marks) Uniweavers Lid produces four rug styles: Tufted. Woven, Shaggy and Fine, using the same plant and processes. The following information relates to a budget period: Product Tufted Woven Shaggy Fine Volume units) 500 5 000 600 7000 Material cost per unit R50 R50 R160 R170 Direct labour time per 0.5 hours 0.5 hours 2.0 hours 1.5 hours unit Machine sme per unit 0.25 hours 0.25 hours 1.0 hours 1.5 hours Labour cost per unit R 30 R 30 R 120 R 90 Under the present costing system.production overheads are absorbed using a machine hour rate of R240, giving an overhead cost per product of Product Tufted Woven Shaggy Fine Cost per unit R60.00 R60.00 R240 R360 = The total production overhead budget of R2 994 000 for the period has been analysed into the following activity cost pools: Activity Budget Factory overhead applicable to machine-oriented activity R935 600 Set-up costs R399 500 Costs of ordering materials R176 000 Materials handing costs R693 900 Administration for spare parts R789 000 Investigation into the overhead activities for the period reveals the following totals: Product Tufted Woven Shaggy Fine Number of sel-ups 10 60 20 80 Number of material orders 10 40 10 40 Number of times material handled 20 100 30 120 Number of spare parts required 20 50 10 40 Required: (a) Calculate overhead costs per product for Uniwearers Ltd, using activity-based costing, tracing overheads to production units by means of cost drivers. (18) b) Comment briefly on the differences disclosed between overheads determined by the present system and those determined by activity based costing