QUESTION Jay Bonsal Sdn. Bhd. is a bonsal tree specialist in Klang Valley which produces exclusive custom-made bonsal. The company has been operating their business since 2008 and its most demanding products are J1 and J2. Jay Bonsai Sdn. Bhd. has supplied the following data that relates to the production of 1,500 and 1,000 units of J1 and J2 respectively: Activity Cost Pool Activity Cost Driver Total Activity for the year J1 J2 Assembly Number of direct labour hours 9.000 hours 7,000 hours Order processing Number of orders 200 orders 200 orders Customer support Number of customers 150 customers 50 customers Cutting and designing Number of machine hour 7,500 hours 4,000 hours Assembly 37% Distribution of Overhead Cost Order processing Customer support 25% 20% Cutting and designing 18% Total overhead cost is RM400,000. During the year, Jay Bonsai Sdn. Bhd. completed one order from a new customer, Appo Enterprise. The detail data for the order is as follows: Unit ordered Direct materials Direct labour cost 10 units RM140 per unit RM60 per unit J2 6 units RM150 per unit RM75 per unit a. Required: Assume that Jay Bonsal Sdn.Bhd. Is adopting traditional costing system where the basis used to allocate overhead costs is direct labour hour. Compute total production cost from the order. (7 marks) b. Using activity-based costing system, calculate overhead cost per unit of J1. (8 marks) c. Explain two (2) reasons why activity-based costing are more accurate compared to traditional costing. (5 marks) (Total: 20 marks)