Vintage Cheddar	Triple Cream Brie
Number of 150 gm packages produced	200 000	50 000
Unit cost information
Direct materials	$3.00	$4.00
Direct labour	$1.00	$2.00
Manufacturing overhead	?	?

The company has conducted ABC analysis and traced the manufacturing overhead costs to four (4) activity pools, with the following cost drivers (see table below):

Activity Cost Pool	Total Cost	Amount of Cost Driver
Purchasing and receiving	$25 000	250 000	Kilograms of raw materials
Setup for production	$50 000	400	Number of batches
Pasteurising and heating	$70 000	75 000	Number of pasteurising days
Quality control	$105 000	15 000	Number of inspections
TOTAL	$250 000

Below, is the activity related information has been collected for each of the two products:

	Vintage Cheddar	Triple Cream Brie
Kilograms of raw materials	200 000	50 000
Number of batches	200	200
Number of pasteurising days	30 000	45 000
Number of inspections	2 000	13 000

QUESTION 7: ABC costing (14 marks] The Wicked Cheese Company produce two types of specialist cheese, Vintage Cheddar and Triple Cream Brie. The company currently uses a traditional costing system with total manufacturing overhead of $250 000 being applied to the two products according to their proportion of direct labour dollars. Assume the following production and cost information for the most recent year: Required: 1. Calculate the total manufacturing cost per package for each of the type different types of cheese using the traditional costing method. Show all workings. [3 marks] 2. Calculate the total manufacturing cost per package for each of the type different types of cheese using the ABC costing method. Show all workings. [7 marks] 3. Compare the manufacturing cost of each product using the traditional system vs ABC costing. Which product was under costed under the traditional system when compared to ABC? Show all workings. [4 marks]