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Sussim Inc. manufactures premium quality, high-performance golf balls and sells them to retailers at a price of $0.70 per ball. The company adopts the normal costing method and currently applies a plant-wide overhead rate. Sussim has completed a customer order for a regular customer called Warrena Golf Club. The product manager is tasked to find out the profitability of this job. The Accountant has broken down the total overhead costs for the period into the following cost pools and identified cost drivers for each cost pool. Overhead Item Actual Setup Costs Actual Expected Expected Cost (S)Cost (S) Cost DriverActivi Activit 58,000 42,000 75,000 9,000 21,000 60,000 Number of 40,000Number of 70,000 Maintenance 10,000 Customer 20,000 Kilowatt- 200 2,100 11,000 4,800 35,000 200 2,000 10,000 5,000 40,000 Setu Purchasing Costs Maintenance Costs Customer Order Processin Electricity Charges ours Orders ours The following data is retrieved for the job completed for Warrena Golf Club Direct materials Direct labour Number of golf balls completed Direct labour hours Number of setups Number of purchases Maintenance hours Kilowatt-hours Actual Budgeted $350 $210 2800 12 4 $300 $200 2600 10 4 40 30 45 28 The company's budgeted direct labour hours for the year is 2,500 direct labour hours Sussim also manufactures a diverse range of other balls such as tennis balls, basketballs, soccer balls, just to name a few. The management has been considering the feasibility of changing the existing overhead allocation method to an activity-based costing method. Kequired (a)Apply the normal costing method and compute the cost of each golf ball (rounded to 2 decimal place of a dollar) for this customer Warrena Golf Club, using direct labour hours to allocate overhead 4 marks)

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