Crystal Eyecare Pty Ltd manufactures two ranges of products: plastic sunglasses and titanium sunglasses. The company pools costs into three activities (costs pools). In July 2021, the company produced 3,000 plastic sunglasses and 1,000 titanium sunglasses. The indirect cost and the driver details for each of the pools for the month along with other information is provided below:

			Estimated numbers of Cost Driver
Activity	Cost driver	Estimated indirect costs	Plastic sunglasses	Titanium sunglasses	Total
Design	Number of design changes	$18,000	300	200	500
Moulding	Number of units produced	$22,200	5,000	1,000	6,000
Quality Control	Number of tests	$27,000	600	300	900
Total overhead cost		$67,200

The direct cost information is also given:

	Plastic Sunglasses	Titanium Sunglasses	Total
Direct labour hours	400	150	550
Direct Labour cost	$180,000	$70,000	$250,000
Raw Materials	$30,000	$50,000	$80,000
Number of Units	3000	1000

Currently, Crystal Eyecare Pty Ltd allocate overhead cost based on Direct Labour Hour.

The current selling price for the glasses is;

• Plastic glasses $100 per pair and
• Titanium sunglasses for $150 per pair.

Crystal Eyecare Pty Ltd has completed indirect cost allocation for both products using Activity Based Costing

A. Using the table template below to complete the full cost calculation per unit for Titanium Sunglasses only (1.5 marks)

B. Calculate the profit/loss per unit (1.5 marks)

C. Should Crystal Eyecare Pty Ltd adopt the Activity Based Costing method instead of traditional costing method? Why? (1 mark)

Costs	Titanium sunglasses
Indirect cost allocated	$19,900
Total Direct Cost	$130,000
Total Cost
Total cost per unit
Unit Selling Price
Profit/Loss