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Question 1 (18 marks) ABC company produces and sells a range of products. Activity-based costing is applied to the control and apportionment of production overhead costs. Information regarding production activities and associated budgeted costs for the next year is as follows: Activ Materials handlin Machinin Assembl Product testin Cost driver Wei ht of materials Items handled Direct labour hours Units tested Cost driver volume Overhead ex nditure 240 OOO k 112 OOO items 90 OOO hours 74 OOO units One of the products that the company produces, Product Axe, has the following estimates for the year: Wei ht of materials Items handled Direct labour hours Units tested Units roduced Required N$76 800 N$197 120 N$94 500 N$153 920 7 800 k 3 100 items 2 700 hours 4 400 units 11 OOO units Marks Determine the predetermined overhead rate, assuming the overheads 1.1 are absorbed based on direct labour hours. 1.2 Determine the budgeted cost drivers for each activity cost pool. Calculate the budgeted production overhead cost per unit of Axe (to 2 1.3 decimal places of N$). Total Sub- total 4 4 10 Total 4 8 18 18