QUESTION 2 A B. Identify the cost driver for each of the activity cost pools below: i. Machine cost ii. Purchase cost Maintenance cost iv. Set-up cost V. vi. Quality control cost Assembling cost (3 marks) Bee Sweets Enterprise supplies pure honey throughout Desa Halban, Perlis. For the last five years, Bee Sweets Enterprise has been charging their overhead using the traditional costing system. Recently, Encik Bashir, the owner has directed you as his accountant to implement the ABC system. The following are the manufacturing overhead cost incurred by the business using both systems: Manufacturing cost (Traditional costing system) RM (per unit) Direct material i. II. 50 Direct labour Overhead 24 20 Manufacturing cost 94 Manufacturing cost (ABC system) Activity Activity cost Cost Driver Cost Driver Rate Allocated OH Machining 200,000 20,000 Inspection 1,080 360 RM10 per hour RM3 per inspection 100 30 Set-up 600 150 RM4 per set-up 40 Total overhead cost RM170 Overhead per unit (RM170/10 units) Direct material Direct labour Manufacturing cost 17 50 24 RM91 Advise Encik Bashir on which costing systems is preferable in pricing and why. (2 marks) Discuss a possible reason for the difference between the traditional costing system and ABC system. (2 marks) State THREE (3) advantages of ABC system in allocating overhead cost. (3 marks) (Total: 10 marks)