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Pulsar Ltd manufactures two types of computer monitors: Office and Gaming and applies manufacturing overhead to all units at the rate of $80 per machine hour. Information about the two products are as follows. Office Gaming Expected volume (units) 6,000 10,000 Direct material cost per unit $40 $65 Direct labor cost per unit 25 25 The data on the activities required for producing all units of Office and Gaming monitors for the year are as follows. Activity Office Gaming Total Cost driver Production set up 60 40 100 No of setups Machining 15,000 30,000 45,000 Machine hours worked Inspection 120 80 200 No of inspections The firm's total overhead of the company is traced to the following activities: production setups, $300,000; machining, $2,430,000; and inspection, $870,000. Required: (a) (3 marks) Based on traditional costing, calculate the total cost of producing one unit of Office monitor and one unit of Gaming monitor. (Hint: what is the machine hour per unit?) (b) (5 marks) Calculate the activity-based overhead rates. What is the overhead cost assigned to one unit of Office monitor and to one unit of Gaming monitor under activity-based costing? (c) (2 marks) Based on your calculations in (a) and (b), recommend to management which costing sys- tem (traditional or ABC) should be adopted by the company. Provide two reasons for your recom- mendation. (d) (2 marks) Identify which of the above activities are non-value added and advise management what to do with those activities. Your advice should be specific to the company