(b) Qdja Sdn. Bhd. manufactures four products, namely A, B, C and D, using the same plant processes. The following information relates to a production period: Material cost Direct labour Machine Labour cost Product Volume per unit per unit time per per unit unit A 500 RM5.00 12 hour 14 hour RM3.00 B 5,000 RM5.00 1/2 hour 14 hour RM3.00 600 RM16.00 2 hours 1 hour RM12.00 D 7,000 RM17.00 1/2 hours 12 hours RM9.00 Total production overhead recorded by the cost accounting system is analysed under the following headings: Factory overhead applicable to machine-oriented activity is RM 37,424. Set-up costs are RM 4,355. The cost of ordering materials is RM 1,920. Handling materials cost is RM 7,580. Administration for spare parts is RM8,600. . These overhead costs are absorbed by products on a machine hour rate of RM 4.80 per hour giving an overhead cost per product of: A =RM 1.20, B =RM 1.20, C = RM 4.80 and D=RM 7.20 However, investigation into the production overhead activities for the period reveals the following totals: Number of times material was handled Product A B C D Number of set- Number of ups material orders 1 1 6 4 2 1 8 4 2 10 3 12 Number of spare parts 2 5 1 4 8 You are required: (i) To compute an overhead cost per product using activity based costing, tracing overheads to production units by means of cost drivers (8 marks) (ii) To comment briefly on the differences disclosed between overheads traced by the present system and those traced by activity-based costing