QUESTION $5(16$ marks; $28\mathrm{.}8$ minutes$)$

Sun Media $($SM$),$ a bookstore for Stellenbosch University sells books and music CDs$,$ and has a caf$.$ SM operates at capacity and allocates selling, general, and administration $($S$,$ G & A$)$ costs to each product line using the cost of merchandise of each product line. SB wants to optimize the pricing and cost management of each product line. SB is wondering if its accounting system is providing it with the best information for making such a decision.

$\backslash$table$[[\backslash$table$[[$Sun Media Bookstore$],[$Product Line Information$],[$For the year ended $31$ December $2018]]],[,$Books,CDs$,$Cafe$],[$Revenues$,$R$3720480,$R$2315360,$R$736216],[$Cost of merchandise,R$2656727,$R$1722311,$R$556685],[$Cost of caf$$ cleaning,$-,-,$R$18250],[$Number of orders placed,$2800,2500,2000],[$Number of deliveries received,$1400,1700,1600],[$Hours of shelf stocking time,$15000,14000,10000],[$Items sold,$124016,115768,368108]]$

SM bookstore incurs the following S$,$ G & A costs:

Purchasing department expenses

$\backslash$table$[[$R $474500],[,$R$,432400],[,$R$,487500],[,$R$,91184],[1485544]]$

You were approached as a management accounting student to evaluate the costing method. After deliberations, you advised them to look at using the Activity$-$based costing method. You are then requested to demonstrate the method to them.

Required:

$5\mathrm{.}1$ Show how the S$,$ G & A costs will be apportioned using the ABC method.

$(16)$