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QUESTION 3 (35 marks) ACB Company has three types of product departments (Milk, Yogurt and Cheese) with the following information: Cheese Number of advertisements Number

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QUESTION 3 (35 marks) ACB Company has three types of product departments (Milk, Yogurt and Cheese) with the following information: Cheese Number of advertisements Number of Customer Orders Number of km driven Milk 40 1400 90,000 Yogurt 40 800 60,000 70 1300 30,000 Total 150 3,500 180,000 The business also has overhead costs as follows: Activity Maintenance vehicle Admin cost customer orders Advertising Costs per activity AED AED 38,000,000 AED 420,200 AED 610,000 Cost driver Number of km driven Number of customers orders Number of advertisements A. Determine the cost of cach of the company's segments under the traditional costing system in which it applies total manufacturing overhead of AED 37,213,200.00 using a predetermined overhead rate based on number of customer orders, B. If the company considering using a variation of activity-based costing to determine its segments costs for extemal reports. Determine the cost of each of the company's three segments under activity-based costing system

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