Nik Hafifi Enterprise is a manufacturer of electrical components and among the products that they produced are A1 and A2. The budgeted overhead cost information for the company is stated below:

Categories of budget overhead cost	RM
Maintenance	510,000
Material handling	190,000
setups	500,000
inspection	750,000

The expected activity level for the cost drivers that would be used are as follows:

Number of material requisitioned	2,000 material requested
Number of inspections	5,000 inspections
Number of setups	6,000 setups
Number of machine hours	10,600 machine hours

In addition, the budgeted direct labour hour for the year is 200,000 direct labour hours.

Actual cost data for year 2012:

Description	Product	Type
	A1	A2
Direct material cost	RM510,00	RM500,000
Direct labour cost	RM190,00	RM90,000
Budgeted direct labour hour	6,000	7,000

Product	Number of unit proceed	Number of setups	Number of inspections	Number of machine hours	Number of material requisitioned
A1	10,000	100	120	5,000	500
A2	12,000	150	150	3,500	600

Required to calculate the production cost per unit:

1. A1 and A2 if the company is using overhead traditional method (plant wide overhead, direct labour hour basis). 14 marks
2. A1 under activity based costing method. 16 marks