Go Fast Cycle's produces three models of bicycles. Model A is a basic bicycle and Go Fast's most well-established product with production of 100,000 units in the most recent period. Model's B and C have been introduced more recently as more specialised models to targeting wider customer groups. In the most recent period Go Fast's production of model's B and C was 16,000 units and 12,000 units respectively. The way in which the three different products used the varying resources of the firm in the most recent period follow: Model A Model B Model C Total DL hours per unit 6.5 3 2.5 Machine hours per unit 2 6 Number of set-ups in the period 124 200 342 666 Number of orders of parts 200 480 428 1,108 Overhead costs relating to Go Fast's production have been analysed into three cost pools and three related cost drivers. Total overhead costs of $1,004,230 can be broadly classified as follows, with the chosen cost drivers being those activities with the closest cause-effect relationship to the cost pools. OH Cost Pool Cost Driver Budgeted OH Costs Machine operating Machine hours $ 583,500 Production scheduling No. of set-ups $ 256,630 Purchasing costs No. of orders $ 164.100 $1.004.230 Required 1. Calculate the amount of OH cost per unit of each of the three product lines based on: a) a single plant-wide rate based on direct labour hours, and b) ABC rates using the three cost drivers identified above. 2. Compare the overhead allocated per unit for each of the three models sold by Go Fast under the two methods calculated above. Based on your calculations, should Go Fast introduce ABC? - Discuss Why