**PLS SHOW WORKINGS. HAND-WRITTEN ONLY**

QUESTION 2 PART A Department X is a division in Bestie Erat and applying activity-based costing. Estimated departmental costs per year are RM1,031,500. The majority effort of activity for this department is finding the best supplier which most of the overhead costs are allocated in this activity. All purchase orders are received in a single shipment. Activity Find best suppliers Issue purchase orders Review receiving reports Cost driver Number of telephone calls Number of purchase orders Number of receiving reports Quantity 475,000 56,875 38,125 Overhead costs (RM) 475,250 287,500 268,750 One special order product manufactured by the company required the following Department X activities: Direct materials Direct labour Telephone calls Purchase orders Receipts 1 kilogram at RM2.25 per gram 5 hours at RM65 per hour 230 60 25 Required: a) Compute the amount of Department X cost should be assigned to this product. (9 marks) b) If 100 unit of the products are manufactured during the year, compute the Department X cost per unit. (1 mark) c) If Department X costs had been allocated using telephone calls as the allocation base, how much cost would have been assigned to this product