Tum Tum foods ltd is a manufacture of baked Luncheon and other meat meat products . Recently, TTML major high volume selling product, baked chicken Luncheon has come under intense pressure from this competitor, Yums Foods LTD. Yum Foods ltd use modem manufacturing process. TTFL's baked chicken Luncheon sells for $ 10.00 per kg pack, based on cost plus pricing system. TTFL applies manufacturing overhead using a plant wide overhead rate based on the number of direct hours worked. Prices a re based on absorption cost the 40% markup. YFL sells its baked chicken Luncheon for $ 8.50 per 1 kg pack. The owner and manager of TTFL, Shaun Murphy, is now getting concern about the sales of their product as the competitions from YFL is fiercely tearing down their business. Murphy's elder son informs his dad about activity based costing that he has recently learnt at Universities and say that they need to relook at the costing method of their product. Murphy id you want to work on your new costing method, go ahead. With the help of his family members, the elder son developed activity based (ABC) system identified the following bill of activities for the production.

Activity	Quantity of activity driver used	Cost per activity driver
Inspect meat	30 inspections	$ 50 per inspections
Disposal of poor meat	200 kg	$ 4 per kg
Move to mincing room	80 barrow loads	$ 8 per barrow
Load mincer	40 loads	$30 per load
Operate mincer	5000kg	$ 2.50 per load
Unload mincer	60 load	$ 25 per load
Move to mixing room	80 barrow loads	$ 15 per barrow
Load mixer	60 loads	$ 20 per load
Operate mixer	60 loads	$ 40 per load
Unload mixer	60 loads	$ 20 per load
Move to packing room	80 barrow loads	$ 10 per barrow
Pack meat into skins	10000 skins	$0.50 per skins
Move to smoke house	500 trolley	$ 8 per trolley
Move to truck	500 trolley loads	$ 15 per trolley

1. Culculate Tum Tum foods ltd cost per 1kg pack of bakes luncheon under the existing absorption costing system .