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Question 1 14 points Kawabat Causes a conting system to locate verhead to as two product Ines Alpha and Omega on the basis of machine hours. This system has been found to be unsatisfactory. The company has identified the following over the conts, and activity dwers for the coming year with the aim of change to an Adity Based Conting System ABC) Expected Cou Delveri Per Activity Expected cost Allvity driver Activity Setting up to $126.000 Number of stup 150 Ordering merah 12.000 Number of orders 900 Machining 126.000 Machine hours 10.500 Receiving 39,000 Receiving hours 250 Bawatat ca produces two models of cell phones with the following expected use of cont des per productie Model Alpha Medel Omega Number of up 100 50 Number of orders 200 500 Machine hours 6.000 4.500 Receiving hours 375 875 Production data for the two product lines is provided Model Alpha Model Omega This completed abo pirmais 550.000 700000 ve our 000 Arquirent a compute the product cost of each product using the existing analog 14 Marks b. Compute the product cost of each produktusg the Activity Based Costing system Marial How can managers use the data you have computed in and above sure to refer to the data to support your answer | Market pinsert your answers to question here For the bar, press ALT FOR ALT F10 Mad Question 2 point Provide full and logical answers to the following essay questions. Merely reproducing notes will not earn you a full mark. 1. The master budget is a static tool which cannot be useful in a dynamic environment. Do you agree? Explain clearing illustrating how the budget could be used to manage risk 13 Marks 2. What are responsibility centres and how are they used by business organisations? 3 Marks) 3. Explain one behaviour effect of budgets 12 Marks) For the toolbar, press ALT=F10(PC) O ALT+FN+F10 (Mac). BTVs Paragraph Arial 10pt IE LIXO > The following data relates to Assembly Division of Cute Wallets, which makes wallets: Direct materials Conversion costs Physical units (wallets) Beginning WIP 1st May 200 ka) $3,000 $1,200 Completed during May 12015 1800 Ending WIP 31st May (b) 100 Total costs added during May 2015 $80,000 $18,000 The degree of completion is as follows: (a). Beginning WIP: Direct materials 100%; Conversion costs, 60%. (b). Ending WIP: Direct materials 100%; Conversion costs, 40%. Required: a. Calculate equivalent units using the first in First Out (FIFO) method [6 Marks) b. Calculate the cost of beginning Work in Process using the First in First Out (FIFO) [6 Marks). Question 2 points Se Provide full and logical answers to the following essay questions. Merely reproducing notes will not earn you a full mark. 1. The master budget is a static tool which cannot be useful in a dynamic environment. Do you agree? Explain clearing illustrating how the budget could be used to manage risk 13 Marks! 2. What are responsibility centres and how are they used by business organisations? 3 Marks) 3. Explain one behaviour effect of budgets 12 Marks) For the toolbar, press ALT=F10(PC) O ALT+FN+F10 (Mac). BIVS Paragraph Arial 10pt LIXO Q5