The following Budgeted information relates to Zenai Ltd for the forthcoming period Products P R (000) (000) (000) 70 Sales and Production (Units) 60 SO f 50 Selling price per unit 100 Prime cost per unit 84 85 40 65 Hours hours hours 3 6 Machine Department (machine hours per unit) Assembly Department (direct labor hour per unit) 8 3 Over heads allocated and apportioned to production departments (including service cost centre costs) were to be recovered in product cost as follows: Machine department at 1.10 per machine hour Assembly department at 0.625 per direct labour hour. You ascertain that the above overheads could be re analysed into cost pools as follows: Cost pools 000 Quantity for the period cost Driver Machining services 397 820,000 Assembly services 418 hours 950,000 Set-up costs 32 820 Order processing 186 42.000 Purchasing 92 order 14.200 Machine hours Direct labour Set-ups Customer orders Suppliers You also have been provided with the following estimates for the period: Products P R 140 250 8500 Number of set-ups 250 Customer orders 8500 Supplier's orders 4500 17000 3500 4700 Required: (a). prepare and present profit statements using- (i). conventional absorption costing (10 marks) (ii). Activity based costing. (10 marks) (b). comment on why ABC is considered to present a fairer valuation of the product cost per unit. (10 marks)