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Tomson Ltd has identified the following overhead costs and cost drivers for next year Overhead Items (Budgeted] Power Maintenance cost Ordering cost E ( cost)

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Tomson Ltd has identified the following overhead costs and cost drivers for next year Overhead Items (Budgeted] Power Maintenance cost Ordering cost E ( cost) $ 27,000 17,800 8,150 Cost Driver [Budgeted] Et activity) Number of orders Machine Hours Kilowatt hours 4,000 5,000 52000 The following is one of the jobs completed during the year Direct materials Direct Labour Units completed # of orders Machine hours Kilowatt hours Actual overhead Product A $2200 $ 2500 210 40 350 200 $1800 Product B $3300 $ 3030 400 21 256 400 $1550 The company's policy uses machine hours as the activity for FBC Part 2 5. Calculate the predetermined rate for the plant using ABC based on machine hours for each job 6. Calculate product cost under ABC. 7. Calculate the unit cost for each Product (ABC) 8. Is the everhead over-applied or under-applied under ABC? 9. Why does FBC differ for ABC methods? [30 marks)

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