Question 3 ([3 + 7] + 5 = 15 marks) Part (A) Opulent Baked Goods, Inc. makes two kinds of breads, Plain and Fancy. The owner has asked you to determine the cost of the two products so that he may know how to reasonably price his baked goods. The plain bread can be prepared and baked in large batches, while the fancy bread is made one loaf at a time. He has provided the following information about the manufacturing (baking) process for the 200 000 loaves of each of the two products for the year. Plain Bread Fancy Bread Ingredients (materials) $140 000 $250 000 Direct labour hours 5000 hours 4000 hours Labour cost @ $ 9.00/hour $45 000 $36 000 Baking time 10 000 hours 11 000 Number of mixes 400 9000 Recipe alterations 1 3 Overhead costs (annual budget amounts): Indirect labour (unit) Mixing of batches (batch) Recipe alterations (product) Estimated Cost Estimated Activity $36 000 9000 direct labour hours $94 000 9400 mixes $40 000 4 alterations Required: (a) Calculate the predetermined overhead rate per unit using ABC allocation methods. (b) Calculate product cost per unit for Plain Bread