Bear Ltd makes shoes in two ranges such as A and B. Information relating to each of these products is set out below: A B Selling price per unit 138 160 Material Cost per unit 50 68 Labour time per unit 3hrs 3hrs Labour rate per hour 18 18 Number of Units Produced Each Year 4,000 6,000 Cost Drivers Number of Quality Inspections 50 750 Number of Sales Invoices Issued each year 200 800 Number of batches per total production 15 85 Machine Hours total 800 7,200 The Director of Bear Ltd has produced the following analysis of total overheads per year and their relevant cost drivers: Cost Pool () Cost Drivers Quality Inspection Number of Quality Inspections 80,000 Sales Invoicing Number of Sales Invoices issued each year 60,000 Material Handling Number of batche per total production 40,000 Other Overheads 120,000 Machine Hours total 300,000 Required: Calculate full cost per unit and profit per unit for each product using: - Traditional full cost method of overhead absorption (based on direct labour hours) (15 marks) - Activity-based costing (ABC) method. (20 marks) (Total: 35 marks)