Pimlico Corporation produces industrial instant high adhesive glue in two grades under the brand name Super-Glue. Budgeted details for the Super-Glue grades are S1 and 52 with following data: S1 S2 Annual sales Average order size Direct Materials per unit Direct Labour per unit Special ingredients per unit production batch size Set ups per batch Labour hours 20,000 6,000 25 20 3.0 2.0 1.5 1.2 3 2 100 2 3 2. 2 50 Overheads Material handling costs Set up costs Special ingredient handling Other overheads 14,000 20,500 4,000 15,000 Cost Driver Number of batches Number of set ups Number of special ingredients Number of orders Required a) Calculate the cost per unit of S1 and 52 based on Activity Based Costing b) Calculate the cost per unit of S1 and 52 based on traditional Absorption Costing. c) How do the two methods compare? d) What type of industries will benefit from ABC or Absorption Costing