The Techxi Sdn Bhd produces three products, A, B, C, all made from the same material. Currently, the company uses traditional absorption costing to allocate overheads to its products. However, the company is now considering an activity-based costing system in the hope that it will improve profitability. Information for the three products for the last year is as follows: A B C Production and sales volumes (units) Selling price per unit 15,000 12,000 18,000 RM7.50 RM12 RM13 Raw material usage (kg) per unit 2 3 4 Direct labor hours per unit 0.1 0.15 0.2 Machine hours per unit 0.5 0.7 0.9 Number of productions runs per annum 16 12 8 Number of purchase orders per annum 24 28 42 Number of deliveries to retailers per annum 48 30 62 The price of raw materials remained constant at RM1.20 per kg throughout the year. Similarly, the direct labor cost for the whole workforce was RM14.80 per hour. The annual overhead costs were as follows: RM Machine set up costs 26,550 Machine running costs 66,400 Procurement costs 48,000 Delivery costs 54,320 Required: (a) Calculate the full costs per unit for products A, B and C under traditional absorption costing, using direct labor hours as the basis for apportionment. (b) Calculate the full cost per unit of each product using activity-based costing. (c) Using your calculation from (a) and (b) above, discuss the consequences if Bhd continues using traditional absorption costing. (5 marks) (9 marks) Techxi Sdn (6 marks)