4 Pinky Sdn. Bhd. (PSB) manufactures four models of budget electric cars: Aria, Semplice, Adagio and Maestoso. The output and cost data for December 2021 are as follows: Output Production Material Direct Labour Units Runs Costs Hours (DLH) Machine Hours (MH) Aria 50 4 RM300,000 150 50 Semplice 20 8 RM300,000 60 200 Adagio 50 2 RM650,000 250 350 Maestoso 20 10 RM650,000 100 400 The production of electric cars would require highly-skilled labours for assembly. Direct labour cost per hour is RM15. For December 2021, the overhead costs have been applied on the traditional costing basis of direct labour hours (DLH). In line with the year-end sales bonanza season, the lower-range models, Aria and Semplice, were sold at RM30,000 per unit. For the higher range models, Adagio and Maestoso, both cars were sold at RM80,000 per unit. All cars produced in December were sold. The cost accountant, Liza, believes that the current use of the traditional volume-based costing system in assigning the overhead costs would result in inaccurate cost information. Liza initiated determining the cost pools responsible for the overhead costs for management consideration. The estimated overhead costs for December 2021 were as follows: Activity Cost Pools Short-run variable costs Set-up costs Production and scheduling costs Material handling costs Cost Drivers RM machine hours 30,800 production runs 109,200 machine hours 91,000 labour hours 77,000 Required: a) Determine the product costs per unit for each of the electric car models using: (i) traditional costing (ii) activity-based costing (6 marks) (9 marks) b) What is the effect of the costing systems in a) on the profit margin for each of the car models for December 2021? Show ALL calculations where necessary. (5 marks) c) Was Liza's concern on the accuracy of the traditional costing system in allocating the overhead costs justified? Why or why not? Show the effect of the costing method on the overhead cost per unit for each car models to support your answer. (10 marks)