Question: answer 1 question 9:07 PM Mon 7 Dec QUESTION 2 {b} (4 marks) (Total 20 marks) Musim Paint Sdn Bhd manufactures two high-quality base paints:

answer 1 question

answer 1 question 9:07 PM Mon 7 Dec QUESTION 2 {b} (4

9:07 PM Mon 7 Dec QUESTION 2 {b} (4 marks) (Total 20 marks) Musim Paint Sdn Bhd manufactures two high-quality base paints: A-Based and B-Based. The company uses the same processing machine to produce both paints in different production runs. Activity Cost Pools Estimated Overheads (RM) Purchasing 240,000 Processing 1,400,000 Packaging 580,000 Testing 240,000 Storing 180,000 Washing EM Total annual budgeted overhead LMQOO The following cost drivers were identied and their expected use are as follows: Activity Cost Pools Purchasing Processing Packaging Testing Storing Washing Expected Use of Expected Cost Drivers per Product Cost Drivers Drivers per Activity A-Based B-Based Purchase orders 1,500 orders 800 700 Gallons processed 1,000,000 gallons 400,000 600,000 Containers lled 400,000 containers 180,000 220,000 Number of tests 4,000 tests 2,100 1,900 Average gallon on hand 18,000 gallons 10,400 7,600 Number of batches 800 batches 350 450 The company has budgeted 400,000 gallons of A-Based and 600,000 gallons of B-Based for processing during the year. Required: a) Compute the overhead cost per unit (gallon) for each product. Comment on ABC methods of overhead allocation. Total ( l 2 marks) \"-3\" 54% El

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