(a) Question 3 Company B produces and sells 4 products. Details of these products are as follows: Product type 'W' 'X' 'Y' 'Z' Outputs in units Machine hours per unit 120 4 100 3 80 120 2 3 The 4 products are produced in production runs of 20 units and are sold in batches of 10 units. Under the current absorption system, the production overhead cost is absorbed using machine hour rate. Production overhead cost comprises the following for the period: - Production department cost RM10,430 Set-up costs RM5,250 Stores receiving Inspection RM3,600 RM2,100 Materials despatch RM4,620 If an activity based costing system (ABC) is operated, the cost drivers to be used are as follows: - Set-up costs No. of production runs Stores receiving Requisitions raised Inspection No. of production runs The number of requisitions raised on the stores Total number of orders executed - Additional information: - Materials despatch Orders executed Required: - 20 for each type of product 42, each order being for a batch of 10 units of a product type. (i) Compute the overhead absorption rate using the traditional costing system. (2.5 marks) (ii) Compute the activity cost driver rates for the cost centres using the ABC system. (2.5 marks)