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Gamesmanship Pty Ltd manufactures two computers; The Gamer and the The Workdesk. Initial calculations completed by the cost accountant have provided the following information for

Gamesmanship Pty Ltd manufactures two computers; The Gamer and the The Workdesk. Initial calculations completed by the cost accountant have provided the following information for year ending 2020;

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Estimated number of Cost Driver Activity Activity Cost driver Indirect cost rate The Gamer The Workdesk Designing No of design $455.00 adjustments 670 127 Fabrication Machine Hours $12.00 600 700 Assembly Direct Labour Hours $48.00 1 100 950 Quality Control No of tests $112.00 890 224 The Gamer The Workdesk Units produced 2000 3500 Direct material per unit $ 420.00 $ 360.00 Direct labour per unit $ 89.00 $ 72.00After completing the costing process, Gamesmanship Pty Ltd provides the following per unit total cost for each product; The Gamer and The Workdesk The Workdesk $ 741.27 $ 471.11 $ 670.35 $ 511.63 Knowing that the manufacturing process involves multiple activities and that the two products differ substantially, advise management which costing method either Traditional or ABC, provides better information and why? (2 marks)

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