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Bristol Electronics Produces Wide Range of Electronic Products Data for 3 Products Only

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Bristol Electronics produces wide range of electronic products. The company has a labour based costing system that was introduced in the 1970s and is now considering implementing an activity based costing (ABC) system. Managers are concerned about how they should compare the ABC data with the existing costing system.
Selected data from the management accounts for the year ending 31st December 2000
 Cost data  Total manufacturing overhead for year £1,000,000 Total hours for year 60,000 hours  Direct labour cost per hour £10\begin{array} { | l | l | } \hline \text { Cost data } & \\\hline \text { Total manufacturing overhead for year } & £ 1,000,000 \\\hline \text { Total hours for year } & 60,000 \text { hours } \\\hline \text { Direct labour cost per hour } & £ 10 \\\hline\end{array}
Data for 3 products only
 Product A  F roduct B  Product C  Annual production 1,000 units 2,000 units 5,000 units  Material cost per unit £5.00£6.00£7.00 Direct labour hours per unit 1.001.500.50\begin{array} { | l | r | r | r | } \hline & \text { Product A } & \text { F roduct B } & \text { Product C } \\\hline \text { Annual production } & 1,000 \text { units } & 2,000 \text { units } & 5,000 \text { units } \\\hline \text { Material cost per unit } & £ 5.00 & £ 6.00 & £ 7.00 \\\hline \text { Direct labour hours per unit } & 1.00 & 1.50 & 0.50 \\\hline\end{array}  ABC data for all products  Cost pool / driver  Annual costs (£s)   Annual volume  Number of set-ups 200,0001,000 Inspection time (hours)  500,0003,000 Machine maintenance (hours)  100,0005,000 Number of purchases 100,000500 Number of shipments 100,0005001,000,000\begin{array} { | l | r | r | } \hline \text { ABC data for all products } & & \\\hline \text { Cost pool / driver } & \text { Annual costs (£s) } & \text { Annual volume } \\\hline \text { Number of set-ups } & 200,000 & 1,000 \\\hline \text { Inspection time (hours) } & 500,000 & 3,000 \\\hline \text { Machine maintenance (hours) } & 100,000 & 5,000 \\\hline \text { Number of purchases } & 100,000 & 500\\\hline \text { Number of shipments } & 100,000 & 500\\\hline &1,000,000\\\hline\end{array}
 ABC data 3 products  Froduct A  Froduct B  Froduct C  Number of set-ups 2018030 Inspection time (hours)  2050300 Machine maintenance (hours)  304020 Number of purchases 345 Number of shipments 346\begin{array} { | l | c | c | c | } \hline \text { ABC data 3 products } & \text { Froduct A } & \text { Froduct B } & \text { Froduct C } \\\hline \text { Number of set-ups } & 20 & 180 & 30 \\\hline \text { Inspection time (hours) } & 20 & 50 & 300 \\\hline \text { Machine maintenance (hours) } & 30 & 40 & 20 \\\hline \text { Number of purchases } & 3 & 4 & 5 \\\hline \text { Number of shipments } & 3 & 4 & 6 \\\hline\end{array}
-Determine the total overhead cost for product A using the using the activity based data

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