Robo Garage Pte Ltd manufactures mini robots: Kirobo and Robi. Kirobo, a robot astronaut, is more complex to manufacture as compared to Robi which is designed to converse with human. The budgeted data for the next financial year is as follows:

	Kirobo	Robi
Production volume	1,000 units	8,000 units
Unit prime cost	$ 500	$ 200
Direct labour hours per unit	8	24
Manufacturing overhead is applied using direct labour hours.

The newly appointed Financial Controller suspects that the current overhead allocation method which is a traditional costing method, has resulted in inaccurate product cost for the two robots. As such, he would like to explore using Activity Based Costing (ABC) method. A breakdown of the manufacturing overhead costs by activity reveals the following:

Activity Cost Pool	Budgeted Cost $	Cost driver	Cost Driver Volume
			Kirobo	Robi
Machine set-ups	100,000	Number of set-ups	160	40
Materials handling	1,220,000	Number of parts moved	12,000	8,000
Quality control	60,000	Number of inspection hours	500	1,000
Total	1,380,000

Required:(Round off your answers to two decimal places, where applicable.)

Determine the unit product cost for Kirobo and Robi using

current traditional costing method

Activity Based Costing method

Show clearly the calculation for the predetermined overhead rate and activity rates. (10 marks)