Speedrat Company manufactures specialised gaming mice. It has provided the following information so that overhead costs could be assigned to each job:

Activity Name	Overhead Cost $	Activity Driver
Material handling	12,000	30,000 units
Machining	38,000	2,000 machine hours
Packing	10,000	8,000 packing orders

The company received a job order S11 from a customer that had the following production details:

Direct material	$37,000
Direct labour	$9,400
No of units to be produced	6,000
No of machine hours	700
No of packing orders	2,000

(Round up all the answers to 2 decimal places if necessary)

(a) Using machine hours as the basis of allocating overheads, compute:

(i) the plantwide overhead rate per machine hour.

(ii) the total overhead cost assigned to job order S11.

(b) Using the associated activity driver, calculate the activity rate for:

(i) Material handling.

(ii) Machining.

(iii) Packing.

(c) Calculate the unit product cost for job order S11 using activity-based costing.

(d) Briefly explain why activity-based cost assignment is more accurate than a single plantwide overhead rate.