Question 2 MASKERS produces two types of facial mask; DUA-PLY and TIGA-PLY whereby the factory is expected to produce 8,000 units of DUA-PLY and 10,000 units of TIGA-PLY to cater for sports tournaments. The total direct material cost for DUA-PLY is expected to be RM300,000 and RM200,000 for TIGA-PLY. The factory is also expected to pay a total wage of RM250, 000 for DUA-PLY and RM150,000 for TIGA-PLY. Other manufacturing cost is considered as overhead. The annual estimated overhead for the year was 500,000. Currently, the factory allocates its overhead on the basis of machine hours whereby DUA-PLY requires 5 machine hours per unit and TIGA- PLY requires 6 machine hours per unit. The company is considering the use of the activity based costing (ABC) to allocate all of its overhead based on the following information: Overhead Cost Driver DUA-PLY TIGA-PLY Total Costs (RM) 150,000 200,000 Direct Material Cost Number of inspections 6 4 Indirect Material Quality Control Depreciation of Factory Machineries Indirect Labour 50,000 Machine Hours (MH) 40,000 MH 60,000 MH 100,000 Direct Labour Hours 45,000 35,000 Required to: a. Calculate the total cost and cost per unit of each product using the traditional costing system. Show all workings (8 marks) b. Calculate the total cost and cost per unit of each product using the activity-based costing system. Show all workings (12 marks) (Total: 20 marks)