Advanced cost & management accounting help please

The management of Beads Assorted Inc. uses an activity-based costing system. Management recently undertook market research as they are hoping to launch two new waist heads; the clasp and the pin. Management wants to assess the costs of producing the items and has enlisted your assistance in doing so. The company uses a costplus system where all goods produced are marked up by 40%. Overheads are absorbed on a machine hour basis and the table below provides additional data on the items for production. Overhead category Annual overheads Activity driver Activities per year Production set-ups $450,000 Production runs 2,500 Machine runs $350,000 Machine hours 5,000 i Quality assurance $600,000 Number of inspections 10,000 i Total $950,000 l The clasp waist bead requires 10 production runs, 120 machine hours and 20 inspections. Material and labour cost incurred are $112,750 and $91,250 respectively. The pin waist bead requires 9 production runs, 80 machine hours and 18 inspections. Material and labour costs are $231,700 and $150,000 respectively. Required: (a) Calculate the total cost and selling price assigned to a clasp waist bead using the traditional approach. (4 marks) (b) Calculate the total cost and selling price assigned to both waist beads using the ABC principles if the entity anticipates adding a 40% margin. (13 marks) (c) Explain three implementation problems often experienced when ABC is first introduced in an entity