3. Jupiter Silverware Products Limited is a leading manufacturer of silver picture frames The company uses a traditional costing system to allocate production overheads to products using machine hours. The newly appointed financial controller believes that activity based costing can provide a better allocation of production overheads to products than the current system does. The following total production overheads for the last period were recorded by the cost accounting system: Utility costs related to machine hours 189,000 Production set-up costs 120,000 Cost of ordering materials 18,000 33,000 Cost of handling materials Details of the three product models and relevant information for the last period are as follows: Model 1 Model 2 Model 3 Number of production runs 17 25 18 Number of material orders 20 30 40 Number of material requisitions 30 100 70 Units produced 1,000 2,000 2,500 Machine hours per unit 1 1.5 2 Direct labour hours per unit ($60 per hour) 0.5 hour 1 hour 2 hours Direct materials per unit $10 $12 $15 Required: (a) Calculate the unit production cost of each of the three products using: (i) the traditional absorption costing, and (ii) the activity based costing approach.