In its mass-production operation, Sunshine Ltd had expand its manufacturing operation two years ago to produce two types of kitchen-cupboards: standard and exclusive. The company is currently using simple costing systems that have two direct costs categories (material and labour) and one indirect cost pool. The simple costing systems use total budgeted direct labour hours of 8,850 to allocate its indirect costs. Due to the increase of the competition in the market, the management is considering changing its costing systems from simple to ABC costing. Last years detailed information is as follows:

	standard	exclusive
Units produced and sold	3200	1800
selling price	$125	$200
direct materials cost per unit	$30	$45
direct manufacturing labour cost per hour	$20	$20
direct manufacturing labour hours per unit	1.5 hours	2.25 hours
direct manufacturing labour cost per unit	$30	$45

After analysing its indirect costs pools, the company found five activities that generate the indirect costs: Production scheduling, Materials handling, Machine set-up, Assembly, and Inspection. The company has completed research on its indirect cost activities and provides the following:

Activity	Activity cost	Cost Driver	Activity Usage
			standard	Exclusive	Total
Production	$ 95,000.00	Runs	25	75	100
materials	$ 42,000.00	Moves	75	125	200
machine	$ 20,000.00	Set-ups	60	140	200
Assembly	$ 50,000.00	Hours	1500	3500	5000
Inspection	$ 23,100.00	Inpections	120	180	300
Total	$ 230,100.00

The management team wants you to provide information (show your calculation) on the following: g), product cost per unit of each type using the simple costing system (15%), h) the product cost per unit of each type using the Activity Based system (15%), and i) brief comments on which method is better than another and explain briefly how the company might use this information to address the declining market (10%)