Part B) COSTING B.1) Critique different approaches to costing. Series 1 and Series 2 are both produced in the same factory and selling prices are calculated by adding a 40% mark-up on production costs. B.2) Using a traditional business wide rate for all overheads based on labour hours calculate the unit costs and selling prices of the Arnold Series 1 and Series 2 cars. B.3) Using an Activity Based Costing approach calculate the unit costs and selling prices of the Arnold Series 1 and Series 2 cars. Latest monthly data; Series 1 Series 2 Production 900 600 Hours of Direct Labour 6 12 per unit E Direct Materials per unit 13000 11000 Direct Labour per unit 108 216 Total Cost Driver activity for Total activity Activity for Series 2 Cost E Series 1 Production Production Machining Machine hours 1,800 1,000 1,800,000 Finishing Direct Labour hours 5,400 7,200 600,000 Materials Ordering No of orders placed 16 10 300,000 Materials No. of material issues 35 22 issue 250,000 made Scheduling 10 210,000 etc. No of production runs 20 Total Overheads 3,160,000