Show Hand in om Question 2 (20 marks) Geo Ltd manufactures three different products: Alpha, Beta and Ceta. The selling prices are determined based on a pricing policy of cost plus a mark-up of 10%'. The company incurred total manufacturing overheads of $748,800, which are currently allocated on a plant-wide basis using direct labour hours as the absorption base. The financial controller is planning the implementation of an Activity Based Costing (ABC) system and has recently identified various cost drivers and assigned costs to related activity cost pools as follows: Cost Pool Activity Material Inspections Machine Maintenance Production Scheduling Cost Driver Material Quantity Machine Hours Production Set-ups $320,000 $316,800 $112,000 The following operating statistics and information concerning the three products are availab Alpha Beta Ceta Machine Maintenance Production Scheduling Machine Hours Production Set-ups $320,000 $316,800 $112,000 The following operating statistics and information concerning the three products are available: Products Alpha Beta Ceta Production (Units) Direct Materials Used Direct Labour Wages 5,000 $35,000 $29,000 8,000 $31,000 $33,000 7,500 $41,000 $31,000 Machine Hours Production Set-ups Raw Materials (Quantity) Labour Hours 24,000 105 400,000 32,000 8,000 305 240,000 16,000 16,000 215 640,000 48,000 Q2 (a) Using the traditional approach of allocating overheads to products, calculate the product cost per unit for each of the three products. (8 marks) (b) Using the principles of Activity Based Costing, calculate the product cost per unit for each of the three products. (12 marks)