[Example-l: ABC Engineering Company manufacturing two products furnishes the followings: for a year. Product Annual output units Total machine hours Total no. of. purchase orders of set-ups A 5,000 |20, 000 160 B 60, 000 1 ,20, 000 334 Total 65, 000 1,40, 000 544 _ The total manufacturing overheads for the company for these two products is Rs. 19,88,000/-. The annual overheads break-up is as under- Machine Hour related activity cost RS5, 50,000 Set-up related costs Rs.8, 20,000 Purchase related costs Rs.6, 18,000 Total Rs. 19, 88,000 Compute the cost per unit of each product A and B based on: a) Traditional method of charging overheads b) Activity based costing method