Q$.7$ Set $($A$)$ The Columbus Company produces mainly two products: major computer parts and

$[5$M$]$

cell phones. The company uses a normal cost system and overhead costs are currently allocated using a plant$-$wide overhead rate based on direct labor hours. Outside cost consultants have recommended that the company use activity$-$based costing to charge overhead to the products. The company expects to produce $4,000$ computer parts and $2,000$ cell phones. Each computer part and cell phone require $2$ and $0\mathrm{.}5$ direct labour hours respectively to produce it$.$ The direct material and direct labour costs included in the two products are mentioned in Table $1.$ The budgeted $($estimated$)$ total factory overhead data is presented in Table $2.$ Based on an analysis of the three overhead activities, it was estimated that the two products would require some activities mentioned in Table $3.($Note: assume suitable additional data, if required. Clearly state your assumptions$)$

Table $1$:Direct material and direct labor Table $2$:Budgeted $($Estimated$)$ Total Factory Overhead Data

$\backslash$table$[[\frac{It}{\text{D}\text{i}\text{r}\text{e}\text{c}\text{t}\text{M}\text{a}\text{t}\text{e}},,\backslash$table$[[\backslash$table$[[$Computer$],[$Part$]]],[$$$30$