Janzen Company manufactures two models of its products: K3 and K4. Jensen Company has supplied the following data for the year ended 2019: K3 K4 15,000 5,000 Number of products Labour hours per unit Direct labour cost per unit Direct materials cost per unit Manufacturing Overhead cost per labour hour Price per unit $150 $100 $10 $600 $300 $200 $10 $1,000 Activity Activity driver Quantity of activity driver Activity cost ($) K3 250 K4 250 Total 500 batches $8,000 No. of batches Weigh raw materials Shaping Set-up Blowing $30,000 $10,000 $60,000 No. of products No. of batches No. of blowing hours No. of loads 15,000 250 1,000 5,000 20,000 units 250 500 batches 3,000 4,000 blowing hrs. 1,500 3,000 loads 1,500 Transfer to storage Total Cost $7,000 $115,000 Required: (a) (b) Assume that a traditional costing system allocates the overhead costs using labour hours. As the only one cost pool, calculate the cost of a unit of K3 and K4 using the traditional costing system. (5 marks) Assume that the Activity Based Costing system uses five activity cost pools instead of the one, calculate the cost of a unit of K3 and K4 using an Activity Based Costing system. (8 marks) What are the benefits of using an Activity Based Costing system and explain the differences in results in requirements (a) and (b) above