QUESTION (25 MARKS) Maju Limbat Sdn. Bhd. has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products, MXN and TXW, about which it has provided the following data: MENN TXW Direct materials per unit RM10.40 RM45.20 Direct labor per unit RM10 RM23.10 Direct labor-hours per unit 0.10 hours 2.10 hours Annual production (units) 35,000 15.000 The company's estimated total manufacturing overhead for the year is RM1,155,000 and the company's estimated total direct labor-hours for the year is 35,000 hours The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activity Cost Pool Assembling products (DLHs) Preparing batches (batches) Axial milling Machine Hours) Total Fstimated Overhead Cost RM 140,000 RM 241,150 RM 766,500 RMI. 147.650 Expected Activity MXN TXW Total 3,500 31,500 35,000 560 1,295 1.855 1,540 1,015 2,555 Required: a) Compute the predetermined overhead rate under the traditional costing method. (3 marks) (CLO3:PLO2:03) b) Determine the unit product cost of product MXN and TXW for the current year. (5 marks) (CLO3:PLO2:C3) :) Determine the unit product cost each of product MXN and TXW under activity-based costing system. (14 marks) (CLO3:PLO2:03) Discuss the fundamental difference of activity-based costing from the traditional costing method. (3 marks) (CLO3:PLO2:C4) "T 1201/Sept/Oct2019 Page 4 of 6