QUESTION 1 (CLO 3) Mak Chee Fai Bhd manufactures product BEE and CEE. The Budgeted overhead of the company is RM500,000 in total. Currently, the company is using traditional method to calculate the production cost. Below are the details of the products: BEE CEE RM20/ unit Direct Materials Direct Labour Volume Machine hour per unit RM15/ unit RM25/ unit 5,000 units 2hrs RM35/ unit 12,000 units 3hrs Mak Che Fai Bhd. is considering to change to the Activity Based Costing (ABC) system. The overheads can be identified with three (3) majors' activities: order processing (RM150,000), machine processing (RM280,000) and product inspection (RM70,000). Product Order Processing Machine hours Inspection hours 200 12,000 3,000 CEE 400 18,000 5,000 TOTAL 30,000 8,000 BEE 600 Required: a) Discuss three (3) the limitations of traditional overhead costing as compared to Activity Based Costing. (6 marks) b) Compute the unit production cost of BEE and CEE by using traditional basis. (7 marks) c) Compute the unit production cost of BEE and CEE by using ABC costing (12 marks) d) Compute the selling price OF BEE and CEE as the company budgets 25% of a profit margin for each product. (4 marks) (Total: 30 marks)