ABC Ltd specialises in manufacturing toaster ovens and is currently using a volume-based costing system with details as follows:

Direct Materials	$32,300
Direct Labour	$21,500
Manufacturing Overheads Cost applied*	$125,500
Total Manufacturing Costs	$179,300

*Overhead cost allocation is based on number of oven toasters produced.

In preparing the activity cost pool information for consideration of possibly applying ABC techniques, the following was noted:

Activity	Activity Driver	Activity Cost
Assembly	# Of oven toasters produced	$30,000
Setups	# Of production runs	$30,000
Quality control	# Of inspections	$65,500
Total		$125,500

Required: (4 marks)

Do you think ABC Ltd should implement an ABC costing system? Explain your answer with 2 case facts AND calculations to support your answer