Apple produces and sells two types of phone, XR and XS. Cost data for both products are shown below:

	XR	XS
Sales price per unit	SGD 300	SGD 200
Cost of direct material and direct labour per unit	SGD 100	SGD 40
Production volume (unit)	2,500	7,500
Direct labour hour	12,500	37,500

The companys accountant has identified the following activities, budgeted cost pool and activity cost driver:

Activity	Budgeted cost pool	Activity cost driver
Engineering	SGD 62,500	Engineering hour
Machine setup	SGD 150,000	Number of setups
Machine operation	SGD 750,000	Machine hour
Packaging	SGD 37,500	Number of order (package)
TOTAL	SGD 1,000,000

Unit and transaction of actual activities for each product are shown in the following table:

Activity cost driver	Level of activity
	XR	XS	Total
Engineering hour	2,500	3,750	6,250
Number of setups	100	50	150
Machine hour	25,000	50,000	75,000
Number of orders	2,500	5,000	7,500

Required:

a) Calculate the overhead absorption rate based on traditional system of using labour hours as a basis for overhead absorption.

b) Calculate the overhead per unit of XR and XS using the data provided for the new Activity-Based Costing system.