Milano Ltd makes shoes in two ranges such as Basic and Deluxe. Information relating to each of these products is set out below. Basic Deluxe Selling price per unit 50 150 Material cost per unit 12 46 Labour rate per hour 8 8 Labour time per unit 1 hour 3 hours Annual sales volume 2,000 units 4,000 units Number of sales invoices issued each year 100 200 Number of Quality Inspections each year Number of labour hours each year 50 2,000 150 12,000 The Director of Milano Ltd has produced the following analysis of total overheads per year and their relevant cost drivers. Type of overhead Cost driver Quality Inspections Number of quality inspections 40,000 Sales invoicing costs Number of invoices issued 30,000 All other overheads Labour hours 140,000 Total overhead costs 210,000 (a) Calculate the total cost per unit and profit per unit for each product using: (1) the traditional full cost method of overhead absorption (based on labour hours) (5 marks) (2) the activity-based costing method. (5 marks) (a) Comment on results calculated. (5 marks) Total marks (15 marks)