Question $5$

Supreme Enterprises is considering moving from a traditional absorption costing system based on direct labour hours to an activity based costing system. The company manufactures two products the Beta and the Spectrum. The following details were provided for a period:

$\backslash$table$[[,$Beta,Spectrum$],[$Planned production,$4000$ units,$5000$ units$],[$Machine hours per unit,$1\mathrm{.}5,2\mathrm{.}0],[$Labour hours per unit,$2,4],[$Number of set ups for the period,$40,50],[$Number of inspections for the period,$400$ units,$500$ units$],[$Number of orders for the period,$20,40]]$

Total overhead cost was broken down into the following cost pools as follows:

$\backslash$table$[[,$$