Sekar Company of Bangalore, India, manufac- tures two types of field hockey sticks-Regular and SuperPro. The following data have been obtained:

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Regular SuperPro Direct materials cost per unit (in rupees) Rs33.00 R$38.00 Direct labor cost per unit (in rupees). R$32.00 Rs44.00 Direct labor hours 12,000 3,000 Machine hours Engineering hours Number of setups 2,000 4,000 450 450 5 20 Number of units 8,000 2,200 Overhead costs are assigned to products on the basis of direct labor hours. The overhead costs consist of the following items: Overhead Cost Item Setup costs. Engineering costs Machine costs Total Amount (in Rupees) Rs 250,000 180,000 900,000 Rs 1,330,000 Required: 1. Using direct labor hours to allocate overhead costs, determine the cost per unit for each product. 2. Using activity-based costing, determine the cost per unit for each product. 3. Comment on the reasons for the differences between costs in Parts (1) and (2).