The following budgeted information relates to Nega Nega Pls for the forthcoming period
Products
	XYI	YZT	ABW
Sales and production (units)	50,000	40,000	30,000
Selling price (Kwacha per unit)	45	95	73
Prime cost (Kwacha per unit)	32	84	65
Machine department (machine hours per unit)	2	5	4
Assembly department (direct labor hours per unit)	7	3	2
Overheads allocated and apportioned to production departments were as follows
Machine department K504, 000
Assembly department K437, 000
The above overheads could be re-analyzed into cost pools as follows:
Cost pool
Cost pool	K000	Cost driver	Quantity for the period
Machining services	357	Machine hours	420, 000
Assembly services	318	Direct labor hours	530, 000
Set-up costs	26	Set-ups	520
Order processing	156	Customer orders	32, 000
Purchasing	84	Suppliers orders	11, 200
	941
You have been provided with the following estimates for the budget period:
Products
	XYI	YZT	ABW
Number of set-ups	120	200	200
Customer orders	8000	8,000	16,000
Suppliers orders	3,000	4,000	4,200

Required Prepare and present budgeted profit statements using a) Absorption costing (6 Marks) b) Activity based costing (14 Marks) c) State and comment on any five (5) problems of standard costing in the modern environment (5 Marks