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Carton Limited Ltd manufactures a variety of special packaging boxes used in the pharmaceutical industry. The company's Melbourne plant is semi-automated, but the special nature of the boxes requires some manual labour. The accountant has chosen the following overhead activities, activity drivers, and costs per unit of activity driver for the plant's product costing system. Activity Annual activity cost Quantity of activity driver Activity driver Purchasing, storage and Raw material material handling $150.000 $1,000,000 costs Engineering and product Hours in design design $50.000 2500 department Machine setup costs $40,000 1000 Production runs Machine depreciation and Machine hours maintenance $250,000 100000 Factory depreciation, taxes, Machine hours insurance and utilities $150,000 100000 Other manufacturing costs Machine hours $100.000 100000 Two recent production orders had the following requirements: 20,000 units of box AAA 10,000 units of box BBB Direct labour hour 50 25 Raw material cost $44.000 $36.000 Hours in design department 10 25 Production runs 2 4 Machine hours 24 20 Required: 1. Calculate the total overhead that should be assigned to each of the two production orders, AAA and BBB. 2. Calculate the overhead cost per box in each order. 3. Suppose the Melbourne plant used a single plantwide predetermined overhead rate based on direct labour hours. The direct labour budget calls for 4,000 hours. a. Calculate the predetermined overhead rate per direct labour hour. b. Calculate the total overhead costs that would be assigned to the order for box AAA and the order for box BBB. c. Calculate the overhead cost per box in each order. 4. Why do the two product costing systems yield such widely differing overhead costs per box? here to ente