Accessorize make and sell two products called X and Y. An activity-based costing system has been implemented to replace the traditional absorption costing system. The annual estimated production activity cost pools and cost driver activity levels for all output are as follows: Activity Cost Pool (S) Purchasing materials $160,000 Storing materials $170,000 Setting up machinery $100,000 Running machinery cost $250,000 Total production overhead $750000 Activity Level 4,000 purchase orders 3400 issue notes 100 set ups 25000 machine hours An analysis of actual annual production usage based on activity cost pool for two products types are as follows: Y Units produced 4,000 units 2000 units Purchase orders 800 1400 Stores issue notes 250 700 Setups 140 250 Machine hours 10000 5000 Direct materials $35000 $15000 Direct labor $200000 $30000 Required: a) Calculate the production cost per unit for X and Y using the machine hour overhead absorption rate under the traditional system. (5 marks) b) Calculate the activity rates. (2 marks) c) Calculate the production cost per unit for X and Y using the activity-based costing system. (5 marks) d) Comment on the costing of both the products under absorption (traditional) costing and activity-based costing methods based on your calculations. (3 marks)