Two products, A and B, are made using similar equipment and methods. Data for the last period are:

Product A			Product B
Units produced	6 000			8 000
Labour hours per unit	1			2
Machine hours per unit	4			2
Set-ups in period	15			45
Orders handled in the period Overheads for period relating to:	12			60
	$
Production set-ups	179 000
Order handling	30 000
Machine activity 55 000 264 000

1. Calculate overheads to be absorbed per unit of each product based on:

i. absorption costing using labour hour absorption rate.

ii. an ABC approach using suitable cost drivers.

2. Distinguish between activity-based costing and traditional costing.