The following information relates to Brunti Inc. for the forthcoming period.

		Product
	Product A	Product B	Product C
Sales and production (Units)	55,000	44,000	33,000
	$	$	$
Selling price (per unit)	49	104	81
Prime cost (per unit)	35	92	71
	Hours	Hours	Hours
Machine department (machine hours per unit)	2	5	4
Assembly department (direct Labour hours per unit)	7	3	2

Overheads allocated and apportioned to production department (including service cost center cost) were to be recovered in product costs as follows:

Machine department at 1.3 per machine hour

Assembly department at 0.85 per direct hour

You ascertain that the above overheads could be reanalyzed into cost pools as follow:

Cost pool		Cost driver	Quantity for the period
Machining services	385,000 $	Machine Hours	420,000
Assembly services	350,000 $	Direct labour hours	530,000
Set-up costs	28,500	Set-ups	520
Order processing	170,000	Customer Order	32,000
Purchasing	92,000	Suppliers Order	11,200
	1,025,500

You have also been provided with the following estimates for the periods:

		Product
	Product A	Product B	Product C
Number of Set-ups	120	200	200
Customer Order	8,000	8,000	16,000
Suppliers Order	3,000	4,000	4,200

Required:

1. Prepare and present profit statements using:
   1. Traditional costing (5 marks)
   2. Activity based costing. (5 marks)