18 Question 5 Candy House Limited manufactures several types of candy and snacks. The following information is available for three of their products: B Selling price $200 $183 $175 per unit $50 $40 $35 Direct material per unit Direct labour per unit Units produced and sold $30 $35 $30 10 000 15 000 18 000 The total number of activities for each of the three products of the period is as follows: A B 1 200 1 800 2 000 Number of purchase requisitions Number of set-ups 240 260 300 Overhead costs have been analyzed as follows: Inspecting quality assurance (cost driver is number of purchase requisitions) $1 400 000 Production scheduling and machine set-up (cost driver is number of set-ups) $1 200 000 Required (show your workings for calculations & write in your own words: (a) Calculate the profit for product B using activity-based costing. (6 points) (b) Although Activity based costing is often recommended in textbooks, there are actually very few companies that uses it as its main method. Explain two (2) reasons for this. (4 points)