Smile company manufactures three products, A, B and C. Forecast data conceming overheads (indirect costs) of the products for the next period as follows B A C Forecast output 50 60 80 (units) Machine hours per 4 3 unit of 8 Number 10 12 customer orders Number of quality 15 control inspections of 8 25 Number 7 5 engineering consultancies of 3,000 Areas 4,500 2,500 workshops (m2) Cost pools and related cost drivers Cost pool S Machine operating 27,000 Order processing 6,000 Quality control 3,000 Engineering consultancy 2,000 Rent of the campus 10,000 Cost driver Machine hours No. of customer orders No. of quality control inspections No. of engineer consultancies Areas of workshops Required Calculate the overhead cost to be absorbed by each of the products using the following absorption costing methods (1) A traditional absorption method based on a machine hour rate (2) An activity-based method, using the relevant cost drivers to trace overhead costs to the individual products 20