i 6. Perniagaan Tandas Highkelas manufactures and sells three styles of kitchen faucets: Brass, Chrome, and White. Production takes 25, 25, and 10 machine hours to manufacture 1,000-unit batches of brass, chrome, and white faucets, respectively. The following additional data apply: HROME WHITE 50,000 40,000 Pr sales in units 30,00050,0 Selli 40.00 20.00 30.00 ice Direct materials Direct labor Overhead cost based on direct labor hours 15.00 3.00 9.00 raditional 12.00 3.009.00 Direct labor hours Machine hours Setup hours 40 25 10 25 0.5 20 30 10 hours 20 Total overhead costs and activity levels for the year are estimated as follows: costs (R Direct labor hours 2,900 hours Machine hours 2,400 hours 95 s 2.700 inspection hours hours 465,500 405.000 ons Required: (a) Using the traditional system, determine the operating profit per unit for the brass style of faucet. 5 marks] (b) Determine the activity-cost-driver rate for setup costs and inspection costs [5 marks] (c) Using the activity based costing (ABC) system, for the brass style of faucet: i. compute the estimated overhead costs per unit. 8 marks] 4 marks] (d) Explain the difference between the profits obtained from the traditional system and ii. compute the estimated operating profit per unit. the ABC system. marks (e) Advice which system provides a better estimate of profitability and why. 4 marks]