SECTION B Attempt all questions Question 1 (20 marks) Gregory's Chicken Shop (GCS) operates in Kingston, Jamaica. The shop sells chicken lunches and dinners to residents and businesses in the area. Currently, the shop's policy is to use a single OAR to absorb its overhonds. The OAR is based of machine hours in an effort to be more competitive in the area, the owner is considering the use of Activity Based Costing (ABC) system The following information is applicable to its two types of chicken meal: Total Overheads - 100.000 Total machine Hours - 50,000 Meals Curried Chicken Baked Chicken Boxes Made Ingredients (Material) Cost per meal 1.abour Cost per meal Machine Hrs per meal 2,500 $ 307 5.000 $50 $ 20 107 $16 2 57 The overheads were divided as follows: Set up Costs 35% Packaging 45% Ingredients Handling 20% The drivers and volumes are as follows: Set ups Packaging Ingredients Movements Curried Chicken 300 500 300 Baked Chicken 50 250 700 Total 3507 7507 1000 Required: (a) Calculate the cost per box for both curried and baked chicken meals under traditional Absorption Costing (5 marks) (b) Calculate the cost per box for both curried and baked chicken meals under Activity Based Costing (ABC). (10 marks) (e) Find the difference in costs for each type of meal and comment on the implications of switching to ABC (5