QUESTION 2 (27 MARKS: 65 MINUTES) Ramadani Sdn. Bhd. (RSB) is producing two products, R and S. Below is the extracted data relating to their company operation: Particulars R 160 40,000 40 24 4 Products S 130 16,000 22 12 2 Selling price (RM/unit) Production and sales (unit) Raw material costs (RM/unit) Direct labour costs (RM/unit) Direct labour hours/unit Machine hours/unit Number of production runs Number of deliveries Number of receipts Number of production orders 2 20 10 140 35 4 40 40 880 65 Overhead costs incurred are as follows: Particulars Setups Machines Receiving Packing Engineering RM 60,000 1,520,000 870,000 500.000 746,000 REQUIRED: (a) Compute the product cost based on a single plant-wide overhead rate. (Use direct labour hours as the basis). (6 Marks) (b) As for each overhead cost: (i) Match the overhead costs with appropriate cost drivers. (2.5 Marks) (ii) Compute the overhead rate for each cost driver. (2.5 Marks) (c) Calculate product costs using activity-based costing (ABC). (14 Marks) (d) Compare the product costs calculated using both methods. Discuss whether the company has set the price appropriately. (2 Marks)