Question 4 The Alpha Company produces two products A and B. The annual quantities produced in a recent period were 500 units of A and 2,000 units of B. Product A requires 2 direct labour hours per unit and product B requires 1 direct labour hour per unit. Activity cost pools and activity measurements for ABC calculations are presented below. Activity Quantity used Quantity used by product A by product B 100 60 50 200 50 50 Cost of Activity Activity measure RM400,000 Ordering hours 600,000 Number of times handled 600,000 Engineering work orders Purchasing Material handling Engineering a) Calculate the unit overhead costs for products A and B using the ABC method. b) Calculate the unit overhead costs for products A and B using the traditional method based on direct labour hours. c) Assuming that the ABC method gives you more accurate cost analysis, what can you conclude from your findings