4of5 c) Swiss 8: Co makes three types of necklace the Diva (D). the Classic (C) and the Poser (P). A traditional costing system is used at present but an Activity-Based Costing (ABC) system is being considered. Details of the three products for a typical period are: Hours . -r unit Labour hours Hachine hours Materials cost Production - r unit 5:: units Direct labour costs 6 per hour and production overheads are allocated to machine hour basis. The Indirect Costs for the period is 28: per machine hour. Total production Indirect Costs are 654,500 and further analysis shows that these can be divided as follows: Costs relating to set-ups Costa relating to machinery Costs relating to materials handling Costs relating to inspection Total Production Indirect Costs The total activity volumes for each product are: Page 4 of 5 Number of Set-ups Number of Number of movements of inspections material 75 12 1540 Costs relating to machinery are driven by the number of machine hours. 3-3- Use one decimal polnt liar your calculations i) lCalculate! the cost per unit for each product using traditional costing. [05 marks] ii] Calculate the cost per unit for each product using ABC principles [25 marks]