SECTION A: COMPULSORY QUESTION 1: (40 MARKS) Part A ( 30 marks) Cobalt Ltd manufactures four products, namely. P1,P2,P3 and P4, using the same plant and processes. The following information relates to a production period: The total production overhead recorded by the cost accounting system is analysed as follows: The overhead costs are absorbed by products on a machine hour rate of Rs 240 per hour, giving an overhead cost per product of: P1: Rs 60 P2: Rs 60 P3: Rs 240 P4: Rs 360 Required: (a) Explain the terms 'Activity Based Costing' and 'Cost drivers'. (b) Compute an overhead cost per product using activity based costing. (20 marks (5 marks) system and those traced by the activity based costing