QUESTION 2 PART A Berlada Bhd. is applying an activity-based costing in Department A. Estimated departmental overhead costs per year are RM1,031,250. Most of the overhead costs are allocated in finding the best supplier since it takes the majority of effort in this activity for this department. Many purchase orders are received in a single shipment. Activity Cost driver Find best suppliers Number of telephone calls Issue purchase orders Number of purchase orders Review receiving reports Number of receiving reports Quantity 475,000 56,875 38,125 Overhead costs (RM) 475,000 287,500 268,750 One special order product manufactured by the company required the following Department A activities: 1 kilogram at RM2.35 per gram 5 hours at RM75 per hour Direct materials Direct labour Telephone calls Purchase orders Receipts 230 60 25 Required: a) Determine the amount of Department A cost should be assigned to this product. (9 marks) b) If 100 unit of the product are manufactured during the year, calculate the Department A cost per unit (1 mark) c) If Department A costs had been allocated using telephone calls as the allocation base, how much cost would have been assigned to this product? (5 marks) DITT