Checkers Limited manufactures three key product lines (A,B and C). The budgeted costs, sales and volumes for the next financial year are set as follows: Overheads allocated and apportioned to production departments (including service cost centre costs) were to be recovered in product costs as follows: Manufacturing department at 2 per machine hour Assembly department at 1.20 per direct labour hour The cost pool for the above overheads are as follows: Following estimates have been provided for the financial year: Required: A) Present profit statements using: (i) Conventional absorption costing (ii) Activity-based costing (20 marks) B) Identify and explain the key advantages of adopting ABC over traditional costing system, and discuss any other factors that Checkers should take into consideration. (10 marks)