Henry Ltd has a single production process for which the following costs have been estimated for the year ending 31 December 2019: Material receipt and inspection $15,600 Power cost $19,500 Material handling cost $13,650 Henry Ltd has three products, i.e. X, Y and Z. They are produced by workers who perform a number of operations on material blanks using hand held electrically powered drills. The workers have a wage rate of $4.00 per hour. The following budgeted information has been obtained for the period ending 31 December 2019: Product X Product Y Product Z Production (units) 2000 1500 800 Batches of material 10 16 Data per product unit: Direct material (sq m) 4 Direct material ($) 5.00 Direct labour (minutes) 24 No of power drill operations 6 6 3.00 40 3 3 6.00 60 2 An activity based costing investigation has revealed that the cost drivers for the overhead costs are as follows: Cost pool Material receipt and inspection Process power Material handling Cost Driver Number of batches of material Number of power drill operations Quantity of material (sq m) handled Required: (a) Prepare a summary which shows the budgeted product cost per unit for each of the products X, Y and Z for the period ending 31 December 2019 detailing the unit costs for each cost element using Activity Based Costing approach; and 1 ACC30009 Analysis for Competitive Advantage Mini Case Study One - Semester 2, 2020 (b) Discuss possible ways to reduce the overheads for material receipt and inspection and the considerations (factors) involved. End of Question Paper