S IR GRILLZUBE:9 :10 12: 13 14:00 15:00 CIB Question 1 Walala Doors has consistently changed manufacturing ve d costs to products using machine hours. However, the company president has decided that the use of ABC would provide more realistic cost estimates and, in turn, give the company an edge in pricing over its competitors. Walala's accountant and production manager have provided the following budgeted information for 2019. given a budgeted capacity of 1 000 000 machine hours. Type of Manufacturing Cost Amount Electric power R500 000 Work cells R3 000 000 Material handling R1 000 000 Quality control inspections R1 000 000 Machine setups R350 000 Total budgeted overhead cost RS 850 000 Type of Manufacturing Cost Electric power Work cells Material handling Quality control inspections Machine setups Activity Drivers 20 000 kilowatt hours 300 000 square meters 200 000 material moves 50 000 inspections 25 000 setups A national construction company approached Candy, the director of marketing about a bid for 2 500 doors. Sandy asked the cost accountant to prepare a cost estimate for producing the 2 500 doors. She received the following data: Direct material cost Direct labour cost Machine hours Direct labour hours Electric power (kilowatt hours) Work cells (square meters) Number of material handling moves Number of quality control inspections Number of setups R50 000 R150 000 5 000 2 500 500 1 000 20 Required: 1.1 Calculate the manufacturing cost per door as presently accounted for 1.2 Calculate the manufacturing cost per door under the proposed ABC (Show all calculations) 1.3 of the two methods present different cost estimates, which cost accounting system is preferable as a pricing base and why