Refer to information in attached screenshot and questions here.

1.Calculate the cost per unit for each product using the traditional overhead allocation method. (4 marks)

2. Calculate the cost per unit for each product using Activity Based Costing principles. Round the cost drivers and cost per unit to two (2) decimal places. Other workings in whole rands.

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Bantergy Ltd operates in the KwaZulu-Natal midlands and produces an innovative, premium energy drink called, 'PremiumOne'. PremiumOne is produced and bottled in Bantergy's state of the art production facility in the midlands. The budgeted and actual performance for the quarter ended, 30 June 2015 is presented below: Original budget Actual Sales - cases 120 000 100 000 R'000 R'000 Sales - value 36 000 29 400 Variable cost of sales 25 560 21 404 PremiumOne liquid 16 200 13 340 Packaging 3 240 2 750 Variable overhead 720 610 Sales and marketing costs 5 400 4 704 Contribution 10 440 7 996 Labour 1 080 1 060 Administrative costs 3 600 3 400 Fixed overhead 3 960 3 940 Net profit/(loss) 1 800 (404) Additional information The quarterly budget is set on normal capacity of 40 000 cases per month. A case of PremiumOne consists of 12 bottles of 750ml each. Bantergy holds inventory of PremiumOne liquid which has an actual value at R.14.50 per litre. Packaging consists of bottles, lids, labels and a carton. Variable overheads are recovered on a per case basis. During January 2015 it became clear that there was an oversupply of premium energy drinks caused by new entrants into the market and lower consumption worldwide. The management of Bantergy Lid has consequently decided that quarterly performance should be measured against 80% of the original budgets set for the year. Industry observers and marketing specialists have warned that the sales price may drop by up to 40% in the near future as energy drink producers will attempt to reduce their inventory by selling it at basement prices