A company manufactures two products, Land M, using the same equipment and similar processes. An extract of the production data for these products in one period is below. L M Quality produced (units) Direct labour hours per unit 5 000 7 000 1 Machine hours per units 3 Set-up in the period 10 Orders handled in the period 15 2146 40 60 Overhead costs Relating to machine activity Relating to production run set-ups Relating to handling of orders 220 000 20 000 45 000 285 000 A. Calculate the production overheads to be absorbed per unit of each product based ABC approach using suitable cost drivers. B. Outline the four stages of the ABC process C. State Two advantages and two disadvantages of the ABC System