A company has two models of transistors model A and model D. It uses traditional approach to overhead allocation. The prices for the two transistors are based on full cost of production. In 2022, the company incurred TZS300,000 of factory overhead and produced 40,000 units of Model A and 20,000 units of model D. Overhead was applied based on a pre-determined rate of TZS10 per direct labour hour. Using this rate, the cost per unit of each model in 2022 is given below: MODEL A MODEL D Direct Materials TZS 6 TZS10 Direct labour TZS 5 TZS 5 Factory overhead TZS 5 TZS 5 TOTAL TZS 16 TZS 20 The company has a promising market and is planning to embark into activity-based costing system next year. Analyzing the given overheads of TZS300,000 of the above figure, it could be assigned to three activities as shown below: TZS Set ups 20,000/= Material handling 60,000/= Equipment operators 220,000/= Total Overhead costs assigned 300,000 The company determined that the following activity drivers are appropriate for each overhead category: Activity Driver Activity level in 2022 Set ups Number of setups 160 setups Material handling Quantity of material (kg) 120,000 kgs Equipment operators Machine hours (MH) 40,000 MH The following are the activity drivers and units produced in 2022 for the two models: Model A Model D Number of units 40,000 20,000 Number of setups 100 60 Quantity of material handled (in kg) 60,000 60,000 Machine hours 14,000 26,000 You are required: a) The company in 2022 used the predetermined overhead rate based on direct labour hours to allocate overheads. Compute how much factory overhead was allocated to the model A and model D. b) If activity-based costing (ABC) had been used in 2022, how much factory overhead would have been allocated to Model A and Model D? Compute total unit cost of the two models using ABC.