This is from management accounting. please answer as soon as possible.

Q2. FireFly Ltd manufactures two electronic components in their Somerset factory. The business has traditionally used an absorption costing system to allocate overheads though are now considering changing this to an activity-based costing (ABC) approach. The following information has been provided by the Finance Director Component A Component B Total Raw Materials costs 80,000 70,000 Total Direct Labour costs 120,000 150,000 Labour time per component 0.75 hours 1.5 hours Number of machine set-ups 20 Number of purchase orders Number of inspections Number of sales invoices processed 300 Number of components manufactured 16,000 10,000 400 10 700 30 100 15 Firefly adds a 50% mark-up to the total cost when setting the product's selling price. The traditional absorption costing system was based on labour hours with overheads being absorbed at 5 per labour hour. An accountant in the company has researched the overheads and has identified they comprise of the following: Machinery Set-up costs Material Ordering costs Inspection costs Selling expenses 30% 40% 10% 20% Hint: You need to calculate the total overheads from the information given a) Required: Calculate the cost and profit for each unit of both components using the traditionat absorption costing method [6 marks] b) Calculate the cost and profit for each product using an Activity Based Costing approach [12 marks] Discuss the differences in your calculations from I) and I) above and recommend whether the company should adopt the ABC approach [7 marks) [Total 25 marks] c) pemana couronne 26.37102020 P11