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QUESTION SEVEN Kasama Ltd manuf actures two products ( Pa and Ta ) using similar methods and equipm ent. The company absorbs overheads into product costs using absorption costing based on labour hours. Having attended a workshop on Activity Based Costing (ABC), the company's cost accou ntant has recommended the adoption of ABC in absorbing overheads into product costs. Data for the two products in the last period: 580000 Required: (a) Outline any four (4) reasons for the use of Activity Based Costing (ABC) and not the c onventional absorption costing in absorbing overheads into product costs (8 marks) (b) Calculate the total production cost per unit for each product based on ABC approach using suitable cost drivers. (12 marks)