Question 2: Job Costing vs. ABC Costing Suggested time: 45 minutes Answer following questions based on the scenario of 3S Inc.: 3S Inc. produces two types of supplements, Calcium and Calcium Citrate in bottles. Company produces 20,000 bottles of Calcium and 15,000 bottles of Calcium Citrate. You can find the data provided by the company about these two products as follows: Calcium Total Calcium Citrate $8.5 $9.00 0.45 $60,000 Direct Materials per bottle $6 Direct manufacturing $9.00 labour rate per bottle Direct labour hours per 0.35 bottle Set up costs Supplements bottles per 100 patch Set up hour per patch Quality control costs Total indirect manufacturing costs Annual production 20,000 75 2 $80,000 $140,000 15.000 a. Under the traditional costing system, the company uses a single indirect-cost pool and allocates costs to the two types of supplements on the basis of direct manufacturing labour-hours. Under this traditional system, determine product cost per bottle for each of the company's two products. (10 marks) b. Under ABC system, the company uses two indirect-cost pools. One cost pool is for set up costs and the other for advertising. For the two types of supplements, the company allocates set up costs based on setup labour-hours and allocates quality control costs based on the direct manufacturing labour-hours. Under ABC system, determine product cost per bottle for each of the company's two products. (25 marks)