Armidale Company Ltd (ACL) manufactures Special-purpose machines. ACL applies Activity-Based Costing (ABC) to work out the cost of its products. The following are the primary manufacturing operations with their respective budgeted overhead costs for the month of December 2021:

Activity	Budgeted Cost (total) Cost	Overhead cost allocation base (numbers)
Handling of Materials	$550000	parts
Setting up of Machines	$165000	setups
Product assembling	$230000	parts
Product packaging	$85000	finished units

ACL’s projected production for December, 2021 is 10,000 units, which, in total will use up 250,000 parts, requiring 150 setups of machines.

Required:Work out the following:

a) For each of the four activities mentioned in the question, what is the per activity overhead costs allocation?

b) What are ACL’s cost ‘per machine produced’ and ACL’s ‘total manufacturing cost’ assuming ACL used Direct Materials, the only direct costs, worth $1951 per unit (per machine produced).

The CEO has provided you with the following summary projected statement of financial position: Summary forecast statement of financial position as at 31 December 2022 ASSETS Non-current assets Property, plant and equipment Current assets Trade receivables Cash and cash equivalents Total assets EQUITY AND LIABILITIES Share capital and share premium Retained earnings at 1 January 2022 Add: Profit for the year ending 31 December 2022 Retained earnings at 31 December 2022 Long-term liabilities 15-year bank loan Current liabilities Trade and other payables Total equity and liabilities REQUIRED: is' 3 45,300 20,039 000 80,000 35,325 8,322 43,647 123,647 b) Prepare a revised summary forecast statement of financial position for ADVENT for the year ending 31 December 2022 which includes your adjustments from a) above. 20,000 65,339 85,339 25,000 13,308 123,647 ii) Explain how ADVENT has incorrectly recorded the loan in its summary forecast financial statements for the year ending 31 December 2022. (270 words max., 6 marks) iii) Set out the appropriate financial reporting treatment of the 25 million loan in ADVENT's summary forecast financial statements for the year ending 31 December 2022. Include correcting journal entries. (18 marks) (12 marks)