Seri owns a jewellery store. Job 555 involves the creation of a bracelet for one of her customers. Direct materials for the bracelet amounted to RM400, and the direct labour was RM200. It took four machine hours to complete the bracelet. Plantwide overhead rates are calculated at 125 percent of direct labour cost. Seri asked her accountant to look into an activity-based costing system. Two activities were identified: machining and materials handling. The following information was gathered:

Activity	Cost	Driver	Driver Amount
Materials handling	RM50,000	Materials cost	RM500,000
Machining	90,000	Machine hours	3,000

Required:

a. Using the plantwide rate, calculate the total bracelet cost?

b. Using activity-based costing, calculate the new total bracelet cost?

c. Explain the inferences you can make about product costing from calculations of the bracelet cost above.