Aqua Delight Sdn Bhd manufactures two models of water purifiers rarely Aquecrystal and Aquapure. The products are manufactured in the company's production plant situated in Kuantan, Pahang. Currently, the company is uning traditional method in locating its overhead costs to each product which is based on direct labour hours The top management of Aqua Delight Sdn Bhd is interested in changing the current conting method to Activity Based Costing (ABC) method. As a management accountant, you are required to present the analysis to the top management regarding this matter. The budgeted production, selling price and cost details for the year 2017 are provided below. Production units Aquacrystal Aquapuro 12,000 10.000 Selling price per unit RM300 RM270 Direct material cost per unit RM160 RM145 Direct labour cost per unit RM20 RM18 Direct labour hours per unit 2 hours 1.5 hours Machine hours per unit 1.5 hours 1 hour Production overheads are estimated to be RM 824,000 and can be traced to four activities as follows: Activity Overhead Cost (RM) Cost Driver Assembly 390,000 Direct labour hours Machining 336,000 Machine hours Order processing 65,000 Customer orders Purchasing of materials 33.000 Number of purchase orders The cost driver volume for each model is as follows: Cost Driver Direct labour hours Machine hours Customer orders Number of purchase orders Required: Aquacrystal 24.000 18.000 800 370 Aquapure 15,000 10,000 500 230 a. b. Compute profit per unit for Aquacrystal and Aquapure using the traditional costing method (Round up the answer to two decimal places). (7 marks) Compute overhead cost for each unit of Aquacrystal and Aquapure if the company applies ABC system (Round up the answer to two decimal places). (8 marks) Explain two (2) drawbacks of ABC method compared to traditional method. (5 marks) c