3. ABB Inc. manufactures two products, Flak and Chrn. 15,000 units of Flak and 10,000 units of Chrn were made and sold this year at 15 and 20 selling price per unit respectively. ABB predicts an increase in demand by 20% for Flak and by 10% for Chrn next year with selling prices remaining constant. Further information based on prediction are given below: Product Product Flak Product Chrn Per unit: Material cost 2 2 Labour 5 8 Per batch: Production scheduling 800 800 Purchasing 650 480 Machine set-up 250 250 Per year: 4,800 3,800 Quality control Design 1,000 400 Another activity that occurs in making the products is material scheduling which is estimated at a rate of 5% of the estimated selling price. Product Flak is usually made in batches of 200 and Product Chrn is made in batches of 100. a. Prepare an activity-based budget for next year. [12 marks] b. In no more than 200 words discuss the differences between activity-based budgeting and zero-based budgeting. [8 marks] [total - 20 marks]