QUESTION 4 (20 marks) Finay Sdn Bhd manufactures two types of fertilizers, L1 and L2 and absorbs overhead on the basis of direct labour hours. Anticipated overhead for the upcoming accounting period is RM836,000. Information about company's products is a follows: LI L2 Expected production 3,000 units 12,000 units volume Direct material cost RM32/unit RM40/unit Direct labour per unit RM30 (2 hours at RMIS) RM60(4 hours at RM15) The overhead of Finay Sdn Bhd of RM836,000 can be identified with three main activities as follow: Order processing RM141,000 Machine processing :RM590,000 Product inspection :RM105,000 These activities are driven by number of orders processed, machine hours worked and inspection hours respectively. Data relevant to these activities are as follow: Order processed Machine hours worked Inspection hours LI 380 22.000 3.000 220 28.000 12.000 Required: 4. Assuming the use of direct-labour hours to apply overhead to production, compute the unit manufacturing costs of product L.1 and L2 if the expected manufacturing volume is attained (4 marks) (CLO 2, PLO 6, C3) b. Compute the cost driver rates for order processing machine processing and product inspection (6 marks) (CLO 2, PLO 6, C3) c. Compute the unit manufacturing costs of products Ll and L2 using ABC system if the expected manufacturing volume is attained. (10 marks) (CLO 2, PLO 6, C3) ACC201/Jan 2021/OP Page 6 of 7