TEBU Ltd$.$ manufactures and sells two products A and $B.$ Annual volumes, labour hours and direct cost data for the two products are given in the table below.

$\backslash$table$[[,$A$,$B$],[$Production volume $($units$),2000,10000],[$Labour hours per unit,$5\mathrm{.}5,5\mathrm{.}25],[$Direct material cost per unit,R$750\mathrm{.}00,$R$670\mathrm{.}00],[$Direct labour cost per unit,R$350\mathrm{.}00,$R$270\mathrm{.}00]]$

Six activity centres have been identified, and cost drivers determined for them are provided in the following table:

$\backslash$table$[[$Activity centre,Cost driver,$\backslash$table$[[$Expected activity$],[$by product in cost$],[$driver units$]]],[$A$,$B$],[$Labour related,Direct labour hours,$11000,52500],[$Machine set$-$ups,Number of set$-$ups,$3000,2000],[$Product testing,Number of tests,$5500,3250],[\backslash$table$[[$Production planning$]],$Number of orders,$100,300],[$Material receipts,Number of receipts,$150,600],[$General factory,Machine hours,$12000,28000]]$

The following table gives the annual overhead costs for each activity.

$\backslash$table$[[$Labour related,R$900000],[$Machine set$-$ups,R$1550000],[$Product testing,R$1600000],[$Production Planning,R$700000],[$Material receipts,R$900000],[$General factory,R$2500000]]$

Required:

$1\mathrm{.}1$ Classify the activity in each of TEBU Ltd$\text{'}$s activity centres according to the ABC hierarchy of activities.

$(6)$

$1\mathrm{.}2$ Assuming that overheads are applied to products on the basis of labour hours, calculate an overhead absorption rate, and determine the total product cost per unit of each product, using this overhead rate.

$(2)$

$1\mathrm{.}3$ Assuming that activity$-$based costing is used, calculate cost driver rates for each activity centre, and determine the overhead cost per unit of each product and the total product cost per unit.

$(12)$

Where necessary round to two decimal places.