q1. calculate the cost driver rates for the six activity cost pools

q2. determine the revised manufacturing overhead for both Beta and Alpha models to replace the amounts of $400,000 and $4,400,400 respectively

q3. prepare a revised profitabiliyy shoeing the revised gross profit percentage

Good Fortune Ltd produces two models of electronic toy games, the Alpha and the Beta (a new model introduced in early 2020). A decision has been made to concentrate the marketing resources on the Beta model and to begin to phase out the Alpha model. The latest product profitability statement of the company and unit costs of both products under the traditional costing (volume-based) system are provided below: Product Profitability Statement for the year ended 31 December 2019 Beta Alpha Total Units produced and sold 4,000 22,000 26,000 $ $ $ Sales revenues 4,560.000 19.800.000 24.360.000 Cost of goods sold*(see below) 3.192.000 12.540.000 15.732.000 Gross Profit 1,368,000 7.260.000 8.628.000 Gross Profit percentage 30.00% 36.67% 35.42% Unit costs under the traditional costing system: Beta Alpha Unit Total Unit Total $ S S $ Direct material 588 2.352.000 210 4.620,000 Direct labor 110 440.000 160 3.520,000 Manufacturing overhead 100 400.000 200 4.400.000 Total product cost*(see above) 798 3.192.000 570 12.540.000 The company's financial controller is advocating the use of activity-based costing (ABC) and activity-based management (ABM) and has gathered the following information about the company's manufacturing overhead costs for the year ended 31 December 2019. ULL TULI IUI $ $ Direct material 588 2,352,000 Direct labor 440,000 Manufacturing overhead 100 400.000 Total product cost*(see above) 798 3.192.000 110 UM $ $ 210 4.620,000 160 3,520,000 2004.400.000 570 12.540.000 The company's financial controller is advocating the use of activity-based costing (ABC) and activity-based management (ABM) and has gathered the following information about the company's manufacturing overhead costs for the year ended 31 December 2019. Number of Activities Overhead Activity Cost Pool (cost driver) Costs Beta Alpha Total $ Soldering (no. of solder joints) 942.000 385,000 1,185,000 1.570,000 Shipments (no. of shipments) 860.000 3.800 16,200 20,000 Quality control (no. of inspections) 1.240,000 21.300 56,200 77.500 Purchase orders (no of purchase order) 950,400 109,980 80.100 190,080 Machine power (machine hours) 57,600 16,000 176.000 192.000 Machine setups (no. of setups) 750,000 14,000 16,000 30,000 Total traceable costs 4.800.000 Required: Perform the following costs analysis using the activity-based costing (ABC) system 01: MacBook Air