QUESTION 1 continued: Required: 1. Use the information above to: a. Determine the total cost of each Health program (A, B and C) under job-costing. ( 3 marks) b. Calculate the price that should be charged for each program (1.5 marks) c. How does appropriate service costing help to plan and control costs? (Refer to your findings from parts a and b above). (1 mark) 2. In regards to the Activity Based Costing approach for the 2 walking tours (Hunter Valley tour and Lake Macquarie tour ): a. Determine the total cost of each walking tour and the cost per person for each tour. ( 4 marks) b. Calculate the total price that should be charged for each tour (1 mark). c. As the recently hired management accountant, Dr. Hoffman asks you to write a memo to the office staff to help explain how activity analysis, activity-based costing and activity based-management helps overcome the problems of conventional costing systems. Refer to as many Reeve readings as possible (at least one), such as 2.4 'Activity Based Costing in Service Industries' by William Rotch, 3.3 'Best Practices in Activity Based Management' by Dan Swenson and 2.1 'Contribution Margin Analysis: No longer relevant/ strategic cost management: the New Paradigm' by Robert S. Kaplan (5 marks) This d. List two (2) factors that you would consider in deciding whether to implement an ABC system. (1 mark)