Calculate the unit cost of The Driver using the company's traditional costing method. (12 marks) PART B The management accountant have recently analysed its value adding processes. They have identified various activities, cost drivers within those activities and production volume information, as below: Activity Cost Pool Cost Driver Process set up $47,500 100 set-ups Material procurement $9,500 50 purchase orders Maintenance $10,000 10 standard maintenance plans Material Handling $22,500 2,000 material movements Quality control $20,500 250 inspectors Order Processing $13,000 300 customers $122,500 In the period ended June 2018 the company plans to produce 800 units of its new product, The Driver, in addition to its existing product range. To achieve this level of output of The Driver, the following activity levels will be required: 5 set ups 4 purchase orders 2 standard maintenance plans 100 material movements 70 inspections 8 sales customers a) Calculate the unit cost of The Driver using activity-based costing method. (12 marks) b) Explain why costs per unit calculated under ABC are often very different to costs per unit calculated under traditional costing method. ( 6 marks)