The accountant for Snappy Photograph Enterprise (SPE) has estimated the following activity cost pools and activity drivers for the coming year: Activity Budgeted overhead Activity driver Activity level cost (RM) Machine set ups 300,000 No. of set ups 100 set ups Material handling 150,000 Weight of raw 50,000 kg material Hazardous waste 75,000 Weight of hazardous 10,000 kg control chemicals used Quality control No. of inspection 1,000 inspections Other overhead cost 300,000 Machine hours 20,000 hours Total 937,000 112,500 An order of 1,000 boxes of film development chemicals has the following production requirements: Machine set ups Material handling Hazardous waste control Quality control Other overhead cost 4 set ups 10,000 kilograms 2,000 kilograms 10 inspections 500 machine hours Required: a) Compute the activity rate for each cost pool. (5 marks) (CLO3:PLO2:03) b) Calculate the overhead cost per box of chemicals for the above order. (6 marks) (CLO3:PLO2:C3) c) Compute the predetermined overhead rate if SPE calculate overhead based on machine hours. (3 marks) (CLO3:PLO2:03) d) Compute the overhead applied to the order in total and per box of chemicals under the approach in (c). (7 marks) (CLO3:PLO2:C3) e) Explain why activity based costing is unacceptable for external reporting. (4 marks) (CLO3:PLO2:C1)