Peach Ltd has identified the following overhead costs and cost drivers for next year:

Overhead Item	Expected Cost	Cost Driver	Expected Quantity
Setup costs	$200,000	Number of setups	500
Ordering costs	$80,000	Number of orders	3,200
Maintenance	$400,000	Machine hours	4,000
Power	$40,000	Kilowatt hours	80,000

The following are two of the jobs completed during the year:

	Job 400	Job 401
Direct materials	$750	$2,000
Direct labour	$700	$2,400
Units completed	100	200
Direct labour hours	50	80
Number of setups	1	4
Number of orders	4	5
Machine hours	20	25
Kilowatt hours	30	50

The company's normal activity is 4,000 direct labour hours.

Required:

(a) Calculate the pre-determined overhead rate if the company uses direct labour hours to allocate overhead costs. (2 marks)

(b) Determine the unit cost for job 400 using direct labour hours to apply overhead. (4 marks)

(c) Determine the unit cost for job 400 using the four cost drivers. (10 marks)

(d) Briefly describe two costs and two benefits of adopting an ABC system (one sentence each). (4 marks)