QUESTION 5 Answer questions 12 & 13 using the information below: Wright Ltd uses an Activity-based Costing (ABC) system to manufacture tractor metal parts. The following budget information relates to Wright.Ltd for next year: Activity Activity Cost pool Activity Cost Annual number K) driver Jof activity cost Idrivers Operating machinery 1660,000 Machine hours 110,000 Maintaining machinery 80,000 Maintenance 1,600 hour Setting up machinery 1256,000 Machinery set-18,000 up Purchasing materials 59,850 Purchase order 450 Controlling quality 1104,500 Quality 15,500 inspection Total 1,160,350 An order from a customer for 80,000 units of parts caused 14,500 hours of machining, 22 maintenance hours, 20 machinery set-ups, 35 purchase orders, and 12 quality inspections. The order used 50,000 of materials and 65,000 of direct labour. The cost driver rate per activity is (1 mark): Purchasing materials 133 Controlling quality 119 Purchasing materials 180 Controlling quality 16 O a Operating Maintaining Setting up machinery machinery machinery d)6 150 32 Ob. Operating Maintaining Setting-up |machinery machinery machinery b)7 40 111 . Operating Maintaining setting-up machinery machinery machinery a) 8 Od Operating Maintaining Setting-up machinery machinery machinery 150 18 |Purchasing materials 13 Purchasing materials 150 Controlling quality 115 Controlling quality [18