Kendel, Inc. produces 2 products, Ken and Del. Overhead has been assigned using direct labour hours in the past. Kendel just set up 3 activity centres, machines setups, maintenance, and packaging to implement Activity-Based Costing (ABC). Product information is as follows: Estimated Cost Estimated Activity Activity Centers Ken Del Total Estimated production 1,600 units 2,400 units 4,000 units Machine setup 144 setups 48 setups 192 setups 3,360 square 1,440 square 4,800 Maintenance feet feet square feet Packaging 2,000 crates 3,000 crates 5,000 crates 72,000 160,000 80,000 Direct Costs Ken Del Total Estimated Cost 3 hours per 2 hours per unit 10,400 hours unit 208,000 Direct labour hours (20 per hour) Direct material (5 per pound) 1 pound 2 pounds 6,400 pounds 32,000 REQUIRED: (a) If the traditional approach is used, how much is the overhead absorption rate? (2) (b) How much overhead per unit is absorbed to 'Del under the traditional approach? (2) (c) Determine the overhead absorbed per unit to 'Ken' and 'Del under ABC. (11) (d) Calculate the total cost per unit for 'Ken' and 'Del' using ABC. (4) (e) Calculate the selling price to be charged for 'Ken' and 'Del' with a mark-up of 20% using ABC. (3) (f) Discuss THREE (3) benefits of using ABC. (3)