5 10 1% BUST2147.3 5 SECTION Answer one question out of two 11. (answer both parts - A and B - of this question) A) Lyons, SA, has identified the following overhead costs and activity drivers for next Overhead Item Expected Cost Activity Driver Setup costs 150,000 Number of setups Ordering costs 40,000 Number of orders Maintenance 200,000 Machine hours Power 20,000 Kilowatt hours Expected Quantity 1,200 10,000 16.000 100,000 The following are two of the jobs completed during the year: Job XX Job YY Direct materials E2,250 2,500 Direct labour 3,000 1,875 Unts completed 375 300 Direct labour hours 90 110 Number of setups 6 Number of orders 8 15 Machine hours 180 150 Kilowatt hours 90 120 The company's normal activity is 20,000 direct labour hours. Required: Determine the unit cost for each job using activity-based costing (Round amounts to 2 decimal places) (10 marks) ) Evaluate the extent to which activity-based costing is different from traditional costing systems (10 marks) B) Stevens Company has two divisions that report on a decentralized basis. Their results for the year were as follows: Helmet Ball Sales 150,000 300,000 Net Income E 15,000 E 45,000 Asset base 75,000 150,000 Weighted average cost of capital 12% 12% Required: Compute the following amounts for each division: Return on investment (ROI) if the desired rate of return is 12 per cent (4 Marks) Turn Over BUS12147-51 MacBook Pro 10 14% BUSI2147-E1 1) Residual income of the desired rate of return is 20 per cent. (6 marks) I) Discuss how the balanced scorecard can foster a balanced approach to performance measurement in line with an organization's strategy (16 marks [Total 40 marks) BUS12147-1 Turn Over MacBook Pro