Kamaljeet Manufacturing produces two products, A and B. Data relating to the two products follow:

	Product A	Product B
Direct Material	82	32
Direct Labour (@$20/h)	60	80

Normal Capacity:

Product A: 5,000 units and Product B 10,000 Units

The company has always used direct labour hours as the base for applying factory overhead costs to products.

The company has identified 4 separate activities as follows:

Activity Centre	Traceable	Total no. of	Product A	Product B
	Costs	events
Machine Setups	448,518	310	187	123
Purchasing costs	560,648	709	496	213
Computer processing	336,389	311	162	149
General Factory	897,036	16659	8245	8414
Total Overhead	2,242,591

(a) Using the traditional method, calculate the POHR and the cost to produce one unit of each product

(b) Assume the company adopts ABC, calculate the overhead rate for each cost driver, the amount of overhead to allocate to each product and the cost to produce one unit of each product