Question 3 Tomson Ltd has identified the following overhead costs and cost drivers for next year Overhead Items (Budgeted] E cost) Power 27,000 Maintenance cost 17,800 Ordering cost 8,150 Cost Driver [Budgeted] E( activity) Number of orders Machine Hours Kilowatt hours 4,000 5.000 52000 The following is one of the jobs completed during the year Product A Product B Direct materials $2200 $3300 Direct Labour $ 2500 $ 3030 Units completed 210 400 # of orders 40 21 Machine hours 350 256 Kilowatt hours 200 400 Actual overhead $1800 $1550 The company's policy uses machine hours as the activity for FBC method Part 2 5. Calculate the predetermined rate for the plant using ABC based on machine hours for each job 6. Calculate product cost under ABC. 7. Calculate the unit cost for each Product [ABC) 8. Is the overhead over-applied or under-applied under ABC? 9. Why does FBC differ for ABC methods