P.12.9 Bajaj Electric Company (BEC) produces electric motors used by manufacturing companies such as those of home appliances. Each motor is made to customer specifications. The BEC has an activity- based costing system with the following overhead costs and cost drivers: Cost pool Annual amount Annual cost driver Direct labour-related 320,00,000 350,00,000 direct labour cost Material ordering 5,00,000 25.000 purchase orders Material inspection 30,00,000 20,000 receiving reports Equipment setup 10,00,000 5,000 setups Quality control 20,00,000 10,000 inspection of motors Machine-related 40,00,000 20,000 machine-hours Miscellaneous 20,00,000 12,00,00,000 of product costs other than Total overheads 1,45,00,000 miscellaneous overheads j12 The BEC has received an order from Prakash Electronics Store (PES) for 5 identical motors. The BEC estimated the following costs (total) and activities related to the order: Material cost, 35,000 Labour cost, 2,000 Purchase order, 2 Receiving reports, 2 Setups, 1 Inspections, 1 Machine-hours 10 REQUIRED: (a) Calculate the cost of Pes job, assuming the BEC uses a traditional costing system with labour cost as the allocation base. (b) Calculate the cost using the ABC system. (c) Comment on the differences in (a) and (b)