AnoDigiinc (ADI) uses a traditional approach to overhead allocation. The company produces two different models of weight scales for use in homes: Analog (an analog scale) and Digital (a digital weight scale with readout). Prices for the two products are based on full costs of production de, inclusive of allocated manufacturing overhead). In 2014, ADI incurred $600,000 of factory overhead and produced 70,000 units of Analog model and 30,000 units of Digital model Overhead was applied based on a predetermined overhead rate per direct labour hour. The wage rate is $12 per direct labour hour and total labour cost is $600,000. Based on this rate, the cost per unit of each product in 2014 was as follows: Model A Model D Direct materials $14 $16 Direct labour 6 6 Factory overhead 6 6 Total $26 $28 The market is becoming more competitive, and ADI is looking into refining its costing system by introducing Activity Based Costing next year. al Explain HOW introducing ABC may impact the costing of the above models. BE SPECIFIC What specific costs) would most likely change, if any? Why? Be sure to mention EACH MODEL 3 marks) D] Describe ONE way that Activity Based Costing can be used by EACH the Human Resources Department and the Organization overalt, respectively What may be the impact? (2 Marks) ANSWER BOTH PARTS BELOW. Label Parta) and Part b