BBAC Sdn. Bhd. is a company that making three products: AA, BA and CC. The budgeted overhead of the company is RM800,000 and the company still using traditional costing and absorbs OH based on Direct Labur Hour (DLH

	AA	BB	CC
Productions (Units produced)	6,000	10,000	4,000
Direct Material (RM per unit)	RM 20	RM 25	RM 15
Direct Labor (RM per unit)	RM 10	RM 20	RM 15
Direct Labor Hour per unit	2 hrs	1 hrs	2hrs

The management is interested in shifting to Activity Based Costing system and found there are THREE major activities involved to produce the products. The OH costs assigned to each activity cost pool as follows:

COST POOL	AMOUNT (RM)
Order Processing	400,000
Set-up Cost	300,000
Inspection Costs	100,000
TOTAL COST	800,000

Additional information:

Cost Driver/PRODUCT	AA	BB	CC	TOTAL
Order processed	10,000	20,000	5,000	35,000
Number of Production runs	5,000	5,000	5,000	15,000
Number of inspections	3,000	5,000	1,000	9,000

Required:. Compute the unit production cost of A, B and C by using traditional basis.

a.Calculate Overhead Absorption rate: