Activity Base Casting (ABC) Oman cosmetics LLC produces three diferent products and sells them in bulk to smaller retailers. It's managers are concerned that the company's profit is not as high as its competitors. They believe they fall in profits could be caused due to the company's uncompetitive selling prices) for one or more product, and loses on other products Details of the company's costs and selling prices are as follows Product Face Pack Handgel Hair-gel OMR OMR OMR Selling Price 90 Direct Costs Labour 10 10 20 Direct Material - Aqua 16 (Water Total Direct Cost 24 28 60 Units produced 2000 3000 1600 Labour hours 2 hour 2 hour per perunt 120 3 hour Currently the company uses the traditional method of allocating indirect overheads but is considering using the ABC method for increasing the accuracy. The company's indirect overheads are as follows OMR 3400 800 Depreciation Purchasing Expenses Direct Material - Aqua (Water) delivery inspection costs Direct Material other delivery inspection costs Set-up costs Canteen expenses 1800 1632 5000 MC Activities associated with the overheads are Face-ul Hand-gel 10 Hair-gel 6 6 6 Number of suppliers Component deliveries per Production runs per month No. of employees Value of machinery 20 12 10 1000 2000 3000 Required: a) Calculate the profit per unit for the three products based on the company's current labour hour based overhead method. (5 Marks) b) Calculate the profit per unit for the three products using the principles of ABC. (5 Marks) e) Comment on the comparative overhead cost per unit for the two products under ABC, and the comparative fotal costa per unit under traditional costing and ABC and Explain your reasons for choosing the buses of overhead allocation