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The company manufactures 3 technology products, details of which are as follows: Product Volume Material cost Direct labor Labor cost Selling price (units) per unit (E) per unit (hours) per unit (E) per unit () L 21 1 200 20 30 84 F 21 6 000 12 170 250 D 21 1 000 10 60 160 Manufacturing indired costs for the period under review amount to 492 KE. The company has decided to use Activity based costing to allocate these indirect costs to each type of product. Manufacturing indired costs have been allocated to 5 activities as follows (all in KE): Material handling 52 Set-up costs 80 Maintenance costs 60 Assembling costs 120 Raw materials storage costs 180 Total manufacturingindirect costs 492 The following activity cost drivers have been selected: Activity Cost drivers L21 F21 D21 Material handling N' of requisitions 4 000 2 000 2 000 Set-up costs No of set-ups 100 80 60 Maintenance costs N' of call outs 80 50 20 N' of units . Assembling costs assembled 1 200 6 000 1 000 Storage costs Floor area (sg.mtrs) 1 000 7 000 2 000 Assignment (3 + 6+ 5 = 14 marks) a/ Calculate the share of manufacturing indirect costs that would be assigned to each product if the company decides to use total direct labour hours as allocation factor as per traditional costing. b/ Calculate the share of indirect manufacturing costs that would be assigned to each product using activity- based costing (compute each activity cost driver rate first). c/ Produce a brief profit statement by product for each of the above methods (you will stop at gross margin as you only have information about manufacturing costs)