Example 2 Two products A and B are made using similar equipment and method. The data for last period are: Units produced Labour hours per unit Machine hours per unit Set-ups in period Orders handled in the period A B 3 000 4.000 2 3 5 3 16 46 21 58 $ 159 000 20 000 Relating to machine activity 35 000 214 000 Overheads for period Relating to production set-ups Relating to order handling Required: Calculate the overheads to be absorbed per unit of each product based on: (a) An ABC approach using suitable cost drivers (b) Traditional costing using a labour hour absorption rate.