Bata Ltd manufactures two different models of its famous video game console: the sBox and xSquare models. The company has been producing the sBox model for 10 years; whereas the xSquare model was introduced this year to appeal to a wider variety of consumers and capture a larger segment of the video game market. Once the xSquare product line was introduced, profits declined rapidly. Management has become concerned about the accuracy of their costing system as sales of the xSquare system have been increasing rapidly since being released. Bata Ltd currently allocates manufacturing overhead using direct labor hours as the cost driver. The company has estimated it will incur $1,900,000 in manufacturing overhead costs and produce 50,000 units of the sBox model and 7,000 units of the Square model. The following information pertains to the production of the sBox and xSquare models: Direct Labour Hours per unit Direct materials per unit Direct Labour per unit Selling Price sBox 1.5 $25 $39 $115 xSquare 2.5 $50 $68 $215 Required A) Calculate the cost to produce one unit of the sBox and xSquare models using the current method of allocating manufacturing overhead (traditional costing). B) The company has decided it wants to switch to Activity-Based Costing, and has identified the following four activities relevant to producing both the sBox and xSquare lines. The relevant amounts for 2022 are: Total units of Activity Cost Driver Cost driver Shipping Number of shipments $ 300,000 800 Quality Control Number of inspections $ 400,000 2,200 Machine Setups Number of setups $ 650,000 340,000 Machine Maintenance Machine hours $ 550,000 480,000 $ 1,900,000 Using the activity based costing data above, compute the total cost to manufacture one unit of each model sBox 375 900 195,000 340,000 xSquare 425 1,300 145,000 140,000 C) Briefly explain the difference between how overhead is treated between ABC and traditional costing, and this difference's overall impact on costing the xSquare model