Ii) Determine the unit cost of producing each product if activity based costing is used (4 marks) (b) The Target Furniture Pty Ltd manufactures two types of chairs - Lounge and King. The company is currently using a traditional costing system with direct labour hours as the cost driver. The company is considering whether to use the activity-based costing (ABC) method to allocate overhead costs to products. Budgeted overhead costs of the upcoming accounting period follow: C Total budgeted Activity driver activity cost $350,000 Activity Material setups Material handling Assembly Number of material setups Number of parts $250,000 $600,000 Number of labour hours I The activity level for the year is: Lounge King Number of parts Number of setups 25,000 100,000 30 95 Total labour hours 40,000 10,000 20,000 Units completed Direct material cost per unit Direct labour cost per unit 5,000 $50 $100 $100 $150 Required: (i) Calculate the unit cost of each product if the conventional costing approach is used (2 marks)