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A. Syarikat Bertahta Indah manufactures and sells three styles of kitchen sinks: Stainless Steel, Granite, and Nano. Normal production takes 25, 25, and 10 machine

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A. Syarikat Bertahta Indah manufactures and sells three styles of kitchen sinks: Stainless Steel, Granite, and Nano. Normal production takes 25, 25, and 10 machine hours to manufacture a 1000-unit batch of stainless steel, granite, and nano sinks, respectively. The following additional data apply for 2020 operation: Stainless Granite Nano Steel Projected sales in units 30,000 50,000 40,000 Per Unit data: RM RM RM Selling price 40 20 30 Direct materials 8 8 WA Direct labor 15 Overhead cost based on direct labor hours (traditional system) 12 3 Hours per batch: Hours Hours Hours Direct labor hours 40 10 30 Machine hours 25 25 10 Setup hours 1.0 0.5 1.0 Inspection hours 30 20 20 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Direct labor hours 2,900 hours Machine hours 2,400 hours Setups RM465,500 95 setup hours Inspections RM405,000 2,700 inspection hours RM870.500REQUIRED: (a) Determine the operating profit per unit for each style of sinks by using the traditional system. (b) Determine the activity-cost-driver rate for setup costs and inspection costs. (c) Compute for each style of sinks using Activity Based Costing System (ABC): (i) The estimated overhead costs per unit (ii) The estimated operating profit per unit (d) Compare the differences between the profits obtained from the traditional system and the ABC system. Analyze which system provides a better estimate of profitability and give your justifications

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