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Que.2. ABC Company manufactures two major products Biscuits and Wafers with the following information: Biscuits Wafers Direct materials cost per unit (OMR) 20.000 15.000 Direct

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Que.2. ABC Company manufactures two major products Biscuits and Wafers with the following information: Biscuits Wafers Direct materials cost per unit (OMR) 20.000 15.000 Direct labor cost per unit(OMR) 50.000 40.000 Direct labor hours per unit 12 hours 3 hours Number of units produced 20,000 20,000 Additional information: 50 Biscuits Wafers Total Number of Salespersons 75 125 Number of Customers 1.250 Number of kilometers driven 150,000 130,000 280,000 350 700 The business also has overhead costs as follows: Activity Costs per activity(OMR) Cost driver Sales 200,000 Number of Salesperson Entertainment 226,000 Number of customers Travel 74,000 Number of kilometers driven Total overhead costs 500,000 Determine the cost per unit of each of the company's two products under Traditional Approach and Activity-Based Costing system. (Assume overhead costs are absorbed in traditional approach based on direct labor hours.)

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