Question 4: (12 marks) (B1, C3) Brick by Brick (BBB) is a building business that provides a range of building services to the public. Recently it has been asked to quote for garage conversions (GC) and extensions to properties (EX) and has found that it is winning fewer GC contracts than expected. In addition, BBB also produces and sells different types of brick to the construction industry. The three types of brick produced are clay, concrete and reclaimed bricks. BBB has a policy to price all jobs at budgeted total cost plus 50%. Overheads are currently absorbed on a labour hour basis. BBB thinks that a switch to activity-based costing (ABC) to absorb overheads would reduce the costs associated with GC and hence make them more competitive. You are provided with the following data: Overhead category Annual overhead $ Activity driver Total number of activities per year Supervisors 120,000 Site visits 500 Planners 140,000 Planning documents 250 Property related 350,000 Labor hours 40,000 A typical GC takes 300 labour hours to complete. A GC requires only one site visit by a supervisor and needs only one planning document to be raised. An EX requires six site visits and five planning documents. Instructions: 1. What are the total overheads assigned to a GC using labour hours to absorb the overheads? (4 marks) 2. What are the total overheads assigned to a GC using ABC principles? (4 marks) 3. What are the total overheads assigned to an EX using ABC principles? (4 marks)