QUESTIONS: NORTHERN LTD Northern Lid makes two products A and B. Information relating to each of these products is set out below. E100 45 B E120 Selling price per unit Material cost per unit 60 Labour time per unit Labour rate per hour Number of Units Produced each year 2 hours 14 2 hours 14 8,000 units 5,000 units 100 500 300 200 Number of sales invoices issued each year Size of each production batch Bought-in parts per unit Machine set-ups per batch Machine Hours foto + 4 3 6 29.600 The Finance Director of Northern Lid has recently produced the following analysis of overheads and their relevant cost drivers Cost () 150,000 66,000 Cost Pool Bought-in parts handling costs Materials handling costs Sales invoicing costs Machine set-up costs All other overheads Total overhead costs Cost Driver Number of bought parts Number of production batches Number of services issued Number of machines ws Machine hours 18,000 28.000 74.000 336,000 Required: A) Calculato the total cost per unit and profit per unit for each product using the traditional full cost method of overhead absorption (based on labour hours) (2 - the activity-based costing (ABC) method (5 marks) B) Comment on your findings and suggest an action plan accordingly (1 mark). marks)