(b) Harmon Ltd manufactures two types of calculators Mathematical and Financial. The company is currently using a traditional costing system with machine hours as the cost driver. The company is considering whether to use the activity-based costing (ABC) method to allocate overhead costs to products. Budgeted overhead costs of the upcoming accounting period follow: Activity Activity driver Budgeted level for activity driver Machining Setup Inspection Total budgeted activity cost $375,000 $120,000 $105,000 Number of machine hours | 75,000 machine hours Number of production runs 100 production runs Number of inspection hours ] 1,500 inspection hours Budgeted information about the two products is as follows: Annual production in units Direct material costs Direct labour costs Direct labour hours Machine hours Number of production runs Inspection hours Mathematical Financial 50,000 100,000 $150,000 $300,000 $50,000 $100,000 2,500 5,000 25,000 50,000 50 1,000 500 50 Required: (i) Calculate the unit cost of each product if the conventional costing approach is used. (2 marks)