Question #1: The ABC Company produces 3 products (A, B & C) using the same materials. The table below shows the production information for the last year: Production and sales volumes (units) Selling price per unit Raw material usage (kg) per unit Direct labour hours per unit Machine hours per unit Number of production runs per annum Number of purchase orders per annum Number of deliveries to retailers per annum 15,000 $7.50 2 0-1 0-5 16 B 12,000 $12 3 0.15 07 12 28 30 18,000 $13 4 0-2 0-9 8 42 62 24 48 Machine set up costs 26,550 Machine running costs 66,400 Procurement costs 48,000 Delivery costs 54,320 Cost of raw materials is $1.2/kg. Labor rate is $14.80/hr. a) Calculate the cost per unit for each product using the traditional method. b) Calculate the cost per unit for each product using activity based costing (ABC)