Question 3 JASALCO Manufacturing company sent their cost accountant to a workshop on activity-based costing in February 2019. He was impressed with the outcome of the workshop and decided to consult with the production personnel. He prepared the following information on cost drivers and the estimated volume for each driver. Product Total A B C Unit produced 50,000 30,000 10,000 90,000 Direct material cost per unit in S 40.0 30.0 55.0 Direct labour in $ 15.0 15.0 15.0 Cost driver Cost driver Total volume A B C Number of setups 250 150 100 500 Machine hours 5,000 3,000 4,000 12,000 Direct labour hours 50,000 30,000 10,000 90,000 Number of inspection 100 50 50 200 The cost accountant also determines how much overhead cost were in each of the four activities as follows: Activity Machining Setup Machining Total of Machining overhead cost Assembly Assembly Inspection Total of Assembly overhead cost Total overhead cost Required: Overhead cost in S 300,000 1,500,000 1,800,000 720,000 180,000 900,000 2,700,000 A. Determine the cost driver rate for each activity cost pool. (5 marks) B. Use the activity-based costing method to determine the unit cost for each product. (7 marks) C. Briefly explain TWO (2) reasons why activity-based costing is a more suitable to implement in JASALCO Manufactory company than traditional costing. (8 marks)